Patrick Boyle
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The Dutch tulip bulb market bubble, also known as tulipmania, was one of the most famous market bubbles and crashes of all time. It occurred in Holland during the early to mid-1600s, when speculation drove the value of tulip bulbs to extremes. At the market’s peak, the rarest tulip bulbs traded for as much as six times the average person’s annual salary.
Today, the story of tulipmania serves as a parable for the pitfalls that excessive greed and speculation in investing can lead to, but was the story true?
In today’s video we look at the story of Tulip Mania as told by Charles Mackay in his book Extraordinary Popular Delusions and the Madness of Crowds, and learn that Charles Mackay was maybe not as good as you might expect at spotting bubbles.
Books Referenced:
Extraordinary Popular Delusions and The Madness of Crowds by Charles Mackay: https://amzn.to/3ZmoN3A
Tulipmania by Anne Goldgar: https://amzn.to/3IuqLrB
Boom & Bust by Quinn & Turner: https://amzn.to/3EwG6qz
Patrick’s Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC
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i bet as Mckay became very influential the big players of the railway bubble paid him to write a column about the marvels of the railway .. the next bubble or the new railway could be the AI craze .. its just starting .. and ts being kindled ..
Tulip Margin Call. Will you accept fertilizer or wooden shoes? 😂
the bit coin bubble and the crash of ftx and its sister companies come to mind …. classic example ..
Im so happy that you point out that tulip mania is a story, not a historical fact backed by several trustworthy sources.
I am surprised Patrick has never mentioned the Wildcat Banking Era in the US, before real government tender.
The kinds of losses sustained by bank customers and outright failure of banks that on the surface at least mirrored what anyone nowadays would call a scam was shockingly similar to the percentage of scams in modern day crypto.
In only two years after free banking legislation I believe upwards of 70% of banks outright failed in states. Certain states had upwards of 90% fail.
We are living in an everything bubble So large that the curvature seems flat.
Richard Mille watches are to me in the tulip mania phase finally headed downward. Come on, rubber wrist bands on a 3 million dollar watch??😂
Would you consider commenting on the BIS ( bank of international settlement) report indicating the 80 Trillion dollar debt in foriegn exchange swap positions and its impact on the feds commitment to appropriate intrest rate hikes in the future?
Patrick got me on that 1.75x
EV's are our modern day atmospheric railways…
Tulips are still a huge industry. As will NFTs continue to be in the years to come. It's just art. The same smooth brain arguments can be said for buying art. Yet people still want to collect art they love. People love beautiful tulips too.
1:58 is Polish Krakow city center, not Utrecht or Eindhoven 🤣. Krakow is awesome by the way.
ah, so its just CSGO skin trading all along
Great video; Thank you, Patrick!
I see signs of the same collective irrational behaviour in today’s obsession with carbon credits and net zero! 😂
Great presentation!
Thanks very well done!!
Another video god damn boyle! I'm getting boyled out keep it up!
Love your dry humor, keep up the good work
Extraordinary Popular Delusions and the Madness of crowds.
Best. Title. Ever.
most people thought 20k to 30k miles of rail were needed, McKay thought it would be 100,000. Most people think a bitcoin should be worth about 20k-30k, and Michael Saylor thinks it should be 100k. funny how that lines up.
So interesting a tulip owner used mirrors in his garden to multiply the bulbs! Remember at that time good mirrors were themselves expensive luxury items, so using them in your garden would have been an expensive high tech display!
Appreciate the critical look and the appeal to academics and historians!
Love hearing it pronounced doggiecoin
How many times in history was it ACTUALLY different this time? Automobiles, computers, landlord parasitism, privatized energy in Britain. All things that could have been bubbles but instead they really did change society and the people who joined the bubble got rich instead of the ones who didn't.
Thank you
I'm waiting for the bubble over bubbles.
I was hoping you were going to make a joke that MacKay at no time said “not financial advice.”
So, tulip mania was only as impactful as the bored ape mania.
It would be interesting to know if MacKay was a railroad investor and lost much by the collapse, or whether he was the Justin Bieber or Tom Brady of his day who simply promoted the foolishness and laughed all the way to the bank.
amazing video – common patrick boyle W
Omg this guy is so smart! Look at him calling out something he thinks he understands! wow so smart! "ITS TULIP BULBS ALL OVER AGAIN!" ive never heard that before.
Patrick out here sending shots 🔫
22:12 OH. This is another video that looks like it's about history, but is really about another vaporware king.
Pat, Mackay ran a newspaper that hyped railways. He didn't miss the bubble because he was foolish. Clearly, he "missed" it because he was profiting from it.
The subtext here is brilliant.
Is this a tacit acknowledgement that orange coin isn’t tulip Patrick?
This is a great educational video, thanks.
And your comments about Bitcoin are … ? Because if there's one thing history teaches us, it's that (mostly) people don't learn from history.
so you're saying tulips were the new blockchain
AI bubble….