Tulip Mania Was History's First Recorded Economic Bubble
In 1637 Netherlands, tulip bulbs became so valuable that a single rare bulb could cost as much as a luxury house in Amsterdam before the market spectacularly crashed.
About this fact
Tulip mania in the Dutch Republic (1634-1637) was the first well-documented economic bubble in history. Tulips, originally from Turkey, became a status symbol among wealthy Dutch merchants. The most prized varieties had 'broken' colors caused by a virus that created stunning patterns. At the peak in 1637, a single Semper Augustus bulb sold for 10,000 guilders - enough to buy a grand canal house in Amsterdam or feed a family for 10 years. People mortgaged their homes, sold businesses, and traded life savings for tulip bulbs. The market was fueled by speculation, futures contracts, and a belief that prices would keep rising forever. When the bubble burst in February 1637, prices collapsed by 95% overnight, causing widespread financial ruin. This event became a cautionary tale about market speculation that economists still reference today.