November 8, 2013
Tulip mania tells us what about human beings and how the environment affects us?
Tulip mania tells us what about human beings and how the environment affects us?
That excitement for something can be built up so much and that people will chase that good or service because everyone else is, driving the price up due to the increased demand. This creates an economic bubble. Bubbles are never sustainable forever, the price then collapses after sometime. People who invested in these things are now left with less value and money because they chased things with high cost and a lot of excitement.
Well said, Alex. Let’s recap.
Tulip mania caused a bubble. It happened then and it will happen again. Learn more here: http://www.youtube.com/watch?v=gkq_G5aBMfg.
The crowd is not your friend. Human beings can “lose it” when they are caught up in the excitement that comes with bubbles (dot.com bubble and housing bubble are two recent examples). You must avoid this type of manic behavior if you want a successful financial future. Stay away from tulips!