This tulips red- that tulips blue – Let's learn about bubbles yeah yeah Poems are hard English wasn't my strong point What do tulips and Market Bubbles Have in common Well, in the 1630s Tubes were all the Blades in the new dutch republic They had Just fought a Bloody Battle with Spain for Their independence

The young Republic had Been a Wonderful Thriving Place for free Markets and The dutch east india Company had become the most Wealthy Enterprise of Its Day despite Having Very little in the way of Natural Resources and Land They're Still Able to create a global Empire They established the first ever stock exchange found in New York city created a Declaration Of independence That The United States won is based off of Launched the last Successful Invasion of England and Dominated Global trade They Lived in one of the first Classless Societies Within Europe There Was a Emerging Middle Class That Didn't Exist in any Other Country At The time This Was a Time Period When the World Map Was shrinking and New and exciting Goods were coming in from all Around The World China From China Spice from india and all Sorts of Other Things Like The tulip from Relatively The Middle east These Goods Would Have seemed like something from a Foreign Planet in Relativity to what we'd look at It as This Is a World Remember That Didn't Get To the north pole until the 20th Century those in the new emerging Wealthy Middle Class didn't Have Really Any Way to distinguish Themselves like The rest of Europe in ways of Nobility or Titles so they look to things of Material nature Hmm Sounds Like something We Do Today and Many of Them Turn to tulips for this solution Because you know it showed off that you had something That Relatively Few Other People had but Why Was a tulip set Up so perfectly to create the first Market Bubble in History So in order to get a Better Understanding Let Go into the anatomy of a Tulip so it takes six to ten Years to actually germinate and become a Flower so it'll start blossoming and then from there it only Has a Few Years Until It dies a Tulip Will also Reproduce With Offshoots There's two to three little Bulbs that come off the side of It and these are Pretty Much Exact Clone of It not Exactly But That'll Play Into a little Bit Later Why some of these Tulips Became so valuable The Supply of tulips and tulip Bulbs for that Matter Was Pretty low and for that reason Everybody Kind of Knew It Was a Little Bit rare for The time being there wasn't gonna be a Whole lot of Influx in the Amount of tulips That were around the tulip breaking virus also Emerged During This time Period making Tulips Have Fiery Colors on them so Instead of being a Solid Color Like Red blue Whatever else it had they would have a Combination These Would be the most rare and sought-After tulips during The tulip Mania People are still unsure as to exactly What caused this and Honestly They Do some Really Crazy Stuff to try and Get this Result as extreme as Planting The Tulips and lighting The Field on fire Go figure they did What they Wanted Then there's the matter of the Growth Cycle so the two of has to be in the ground for Pretty Much Nine Months Out of The year the only time It can come out Is During The summer months so it sits in the ground all Winter it'll Sprout up in the spring and then Dies Out and That's the Only time you can pull it up and Now we hit the point in the story where the pressure starts To build Within The system it all started When People discovered one or two bulbs Within Their dozen that They had purchased Was One of These Fiery and Valuable Ones They would go and sell It to somebody else but They couldn't dig it up Because It Would Kill It so What Would They do They'd Go and write a contract Just Have it collected on at a future date so It'S a futures contract That They're writing Right Now from there that Next person also being a Savvy Business person They were Would Go and Find Somebody who also wanted It and then sold It to them They Would Make Money But Pretty Much Just switching This Contract and Selling It and Then Reselling It and you Know That's Kind of The Very Very Beginning of Where this comes from It Really Doesn't Sound like anything we Do today That Does It everything Was relatively normal Yeah the tulips were a Little Bit Overpriced you Know People were making Money but It really wasn't a Big deal Until the french came in French Merchants Started Purchasing These for Their Wives and taking them back home the tulip Merchants Saw an Opportunity to Make Money and so They started stockpiling These Tulips This created an artificial Drop in the Supply for these tulips at This Time Wages were significantly Higher Than most Places in Europe due to the fact that a lot of the workforce had died during the revolution from The plague had Just come through again and It Killed off a Lot of People so there's a Lot of Inheritance That You know going to people and a Lot of more Money Out there to be Speculated with in this New emerging Market Very Very lucrative Soon Instead of growing Tulips many Began Buying Bulbs speculate with with the sole intention of reselling them Juleps Would become The dutch Republic's fourth Largest Export During This time in november of 1636 the Speculation and price boom Within a Short time Period the Viceroy tulip Was selling for three Thousand Florins Hmm well how much is that the average Wages for a Year of a Skilled Laborer were three Hundred Florins People Went Crazy They started Selling Everything to start Buying Tulips and speculating During This time Period tulips could Switch Hands as Many as eight Times a Day People were buying Bulbs What they buy a house for in one an extreme Example Twelve acres of Land Was offered for an Augustus Bulb Out of This Frenzy a Story Comes Of a Sailor Who Mistook a rare tulip for an onion and Was promptly Jailed After The merchant discovered he had Eaten It in a Stew Because This tulip iF sold Would have paid the Salary of the entire crew for twelve Months Many Made Fortunes on Their speculations and Just like Flies Drawn to honey The suckers for cheap Money Started to buzz many Believed that the passion for tulips Would never die in europe and then The European Aristocracy Would Always come to Holland and Pay Whatever price they Asked For They even Believed there Would be no more Poor with in holland Then on February 3rd No one Showed Up to a halt and Auction to purchase tulips People Showed Up to watch But, no One Bid on them panic Struck tulips that had Been selling Yesterday Now Weren't even being Bid on Most of The Savvy investors had Already Pulled Their Money Out realizing the Overinflated Prices That These Luxury Goods were being sold for there are many factors to why people might not have participated in this Auction But It Was a Signal of The popping of the bubble out of This there's Two Groups those invite Actual Bulbs That were now worth 10 20 30 times less Than What they paid for and in the second Group that Was going to pick the bulbs Up and pay for them Later Many Of These Contracts Weren't Enforced and a 10% nullification Fee Would Be Charged By the government to nullify These contracts However Every City Dealt With This Very differently and It Wasn't even across the Board Virtually Overnight All The Money That had Invested in the tulip Market Evaporated This did not Crash The dutch republic economy However It did Ruin Many and created a Strain on Certain Sectors This Is a Wonderful Example of the Human Psychology and the Fear of Missing Out on easy Money This illustrates to us perfectly how People will detach Themselves from reality to chase Unreasonable Gains and Cheap Money in Fields That They Know little or nothing about and have sought no Professional Advice on yeah i don't see any parallels

To now at all no none none Whatsoever? we'll never truly Understand What made People go Crazy Over These Tulips Because They've all died Out Let us not forget People Still seek Out exotic Plants today in 2005 the shez ihnen no Keogh Orchard i know i butchered It okay Was scientifically created and It Takes five Years to bloom and Was sold for Over Two Hundred and Seventy five Thousand us dollars the Real Lesson Here is Just don't buy into all the Hype and the worry that you're gonna miss out Because a Lot of The Times When Everybody is Rushing into something The Money Has Already Been made and The People That are getting in are Just gonna get Burnt i'm not Saying don't ever invest i'm Saying Be Smart about how you invest Learn What you're investing in you Know everything about It become a Master at It and Really Put in the time to get advice for professionals Hey Thanks for Watching This far You're awesome i'm trying to figure out Exactly What we're gonna call This segment where we look back in History and Take Lessons from What Other People Have already done Throw It Down in the comment Section and i'm gonna pick It from One of them maybe it'll be Yours