1 year ago

Market bubbles are a common part of the financial system, but they're often misunderstood.
In this video, we'll uncover what a bubble is, how it works, and why it's so important to understand them.
We'll also explore the history of tulip mania, which some argue to be the world's first financial bubble.

The tulip bubble is the world's first financial bubble. It occurred in the 17th century, and it was based on speculation. The Dutch were trading tulips as a commodity, and they were buying them high and selling them low—which is basically how all bubbles work.

It's important to understand that there is no such thing as a "tulip mania" or a "tulip crisis." These terms are used by people today who don't understand what happened back then, and they're always used in reference to the Dutch tulip trade.

The Dutch were trading tulips as a commodity, but they weren't buying them high and selling them low—they were just buying them at whatever price they could get for them! And then when everyone saw everyone else buying up these flowers, they got excited about making money off of it too, which drove up prices even more.

So basically what happened here is that there was this really great flower that everyone wanted because it was so beautiful and unique looking; however, no one understood how much demand there would be for these flowers until everyone started seeing other people buy them up! So then those people wanted

After watching this video, you'll have a better understanding of how market bubbles work and will be able to tell if one is forming in your own portfolio or an industry you follow closely.

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🕐 Time Stamp:

00:00 Introduction
01:14 What is Tulip mania
05:56 How to support the Channel? 🤑
06:12 Bubble Burst
09:09 Learnings from Tulip mania
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#finacialeducation #tulipmania #stockmarket
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