'Tulip mania,' the 1630s Dutch craze where rare bulbs were briefly traded like luxury assets, may have been the first financial bubble—and it still shapes markets today.

Tulips were once viewed as alternative investments in Holland

In the 1600s, during a period of relative wealth for the Dutch after they gained their independence from Spain, some started collecting rare flower bulbs that created speckled and striped tulips.

Indicators of economic bubbles include euphoric narratives and extreme valuations.

Learn about what causes economic bubbles, including how forces like cheap credit, soaring optimism, and feedback loops push asset prices far beyond fundamentals—until a single shock triggers panic, selling, and a rapid collapse.

The lifecycle of a financial bubble often follows a predictable pattern

Economist Hyman Minsky originated what became a five-stage model of an economic bubble: a new “displacement,” a rapid boom, euphoric speculation, early profit-taking by insiders, and finally panic selling. From Japan’s 1980s real-estate surge to the 2008 crash, the pattern repeats across eras and assets.

The 1929 stock market crash is a defining example of a financial bubble burst

Fueled by margin speculation and intense optimism, stock prices soared to unsustainable levels before collapsing in late October—erasing billions in market value within days.

Bubbles can exist in markets for collectibles, not just industries and technology

This podcast tells how "Magic: The Gathering" faced its own speculative bubble as rare cards surged in resale value—risking a Beanie Baby-style crash. It follows how the game’s creators tried to engineer a system to keep a collectibles market from collapsing.

The South Sea Bubble was an 18th-century scandal that redefined speculation

This video illustrates how the South Sea Company in Britain sparked a stock boom in 1720, with promises of huge trading profits, driving shares to unprecedented heights before a sudden crash wiped out the fortunes of investors—including Isaac Newton, who lost an estimated £20K.

The Beanie Baby craze is known as one of the wildest collectible bubbles in history

The Beanie Baby boom saw collectors drive prices for stuffed animals into the hundreds or thousands of dollars, fueled by hype surrounding scarcity and online bidding wars. When demand collapsed in the early 2000s, the market crashed—leaving steep losses for many speculators.

The dot-com boom sent tech stocks soaring before a historic collapse

A look at the dot-com bubble, when investors poured money into unproven internet startups, driving the Nasdaq to dizzying heights before it crashed by more than 80% after 2000, showing how new technologies can detach markets from reality.

The first-ever IPO was issued by the Dutch East India Co., a spice company.

It first offered shares to the public in the 1600s on the Amsterdam Stock Exchange to help finance its passages. The Dutch East India Co. succeeded in part due to its monopolistic hold over the East Indies at the time.

A rush to invest in British rail in the 1840s led to investor ruin

During “Railway Mania,” speculative excitement pushed British rail shares to extreme valuations as investors chased rapid expansion. When costs ballooned and profits failed to materialize, the bubble collapsed in 1847—wiping out fortunes across the country.

The origin and history of stock exchanges

When were stocks first sold? Though debt was first sold in Venice in the 14th century, stocks proper began in the Netherlands. To fund its spice trade across the world in 1602, the Dutch East India Company sold stocks to individual investors, a novel approach to raising funds. It was the Dutch West India Company that founded New York—the site of some of the world’s greatest stock exchanges. Listen to a concise historical overview here.

The evolving industry of flowers

The global trade of flowers is worth billions of dollars, and new markets and supply chains are opening each year. This multimedia deep dive takes a look at the origins of the modern flower trade in the Netherlands and its expansion into dozens of...

A stock market timeline

The stock market has come a long way since the 1600s, when the first version of a stock exchange was created in Amsterdam. Mile markers along the way include everything from the Dow Jones Industrial Average's creation in 1896 to the stock market woes during the COVID-19 pandemic in 2020.

BNPL has 19th-century roots, but the pandemic made it mainstream

The modern BNPL model didn't take off until the COVID-19 pandemic, when consumers were stuck at home and lockdowns forced them to shop online rather than in person. The number of US BNPL loans grew more than tenfold from 2019 (16.8 million) to 2021 (180 million), according to a Consumer Financial Protection Bureau report.

How one man placed the first short against the Dutch East India Company

Isaac Le Maire, a Dutch businessman and cofounder of the Dutch East India Company, is said to be history's first short seller, betting against the Dutch East India Company's stock price. Le Maire, who had been fired from the spice trading company over an unclear financial dispute, began spreading false rumours about the company to encourage people to sell their stock in order to tank its value.

The world's oldest stock exchange was called the Amsterdam Stock Exchange

What is now referred to as Euronext Amsterdam got its start centuries ago, in the early 1600s. Back then, it was called the Amsterdam Stock Exchange—and it might not have existed without the Dutch East India Co.'s desire to raise funding for its seafaring ventures.

The dot-com stock bubble taught Howard Marks about markets

Annual investment letters from Howard Marks, the billionaire cofounder of top distressed debt shop Oaktree Capital Management, are required reading on Wall Street. The prolific writer and investor explains the distinction between the folly of trying to time the market and the necessity of paying attention to market cycles. The difference makes all the difference in returns.

The dot-com bubble burst in the early 2000s

If you’ve heard of companies like Google and Yahoo, you’re already partially familiar with the dot-com bubble: a period from roughly 1995 to 2001, when internet companies were the hottest thing in venture capital. The “bubble” part of the term refers to the industry’s eventual implosion.

The 2008 financial system unraveled in a wave of speculation

Michael Lewis—author of the bestselling "The Big Short"—explains how a wave of speculation (among other factors) drove the 2008 collapse, from lenders issuing risky mortgages to Wall Street turning them into fragile securities. He also highlights the few outsiders who recognized the bubble and bet against it before the crash.

The world’s first publicly traded company was the United East India Co.

In an effort to best Spain and gain access to valuable trade in Asia, the Dutch Republic launched the VOC, or the United East India Co. The company held an initial public offering in 1602, allowing “subscribers” to choose how much they wanted to invest in the new venture. It was open to all residents of the republic, making this the first opportunity for retail investors in the world.

Subprime lending practices, which fueled the housing bubble, surged after 2000.

The bond market dates back to the 1100s in Venice

In the early 1800s, bonds were used to fund US railroads and canals in Great Britain. “Liberty Bonds” were sold during both World Wars in the 20th century. Learning about the early and modern history of bonds can offer a glimpse into how the modern bond market came to be.

In the aftermath of the 2008 financial crisis, the Fed began a program of quantitative easing

This program injected trillions of dollars of new money into financial markets to stimulate the economy. The move catalyzed an 11-year bull run and was repeated during the pandemic. Experts argue such power could worsen wealth inequality and contribute to bubbles in housing and finance.

Since its introduction, the price of bitcoin has experienced significant volatility

Driven in large part by speculation and intense social media attention during the pandemic, along with the availability of capital during near-zero interest rate periods, the price has seen at least three major crashes despite steadily increasing over the long run since 2014.

When the New York Stock Exchange was started in 1792, traders would meet both outside on the street and in coffee shops to do business.

The world's most famous case of deflation happened after Black Thursday

While the details are not fully agreed upon, many economists point to the Federal Reserve's tightening of the money supply as a prime culprit, leading to a significant deflationary spiral.

In 2007, Bridgewater Associates, the world's largest hedge fund, warned of an impending financial crisis.

FTX, one of the world's largest crypto exchanges, collapsed in 2022

As crypto markets declined during the post-pandemic slowdown, Sam Bankman-Fried propped up the markets with billions he'd earned leading FTX, one of the largest crypto exchanges. Then, in one of the most rapid financial implosions in modern history, the exchange collapsed as investors rushed to withdraw money.

Markets have always recovered and hit new highs following crashes

The crash that preceded the Great Depression was the most severe the US has ever experienced. It was 28 times worse than the downturn that followed the Cuban Missile Crisis.

The 'big bang' of the dot-com era: Netscape's stock price doubled on the day of its initial public offering

The company behind the browser that revolutionized search went public on August 9, 1995. Just before the IPO, the company increased its initial opening price from $14 to $28. On the day the company went public, shares traded as high as $71 before closing at $58.25. The company's market capitalization exceeded $2B. The eye-popping IPO is largely considered the beginning of the dot-com bubble.

A history of stock exchanges, from Venitain merchants to modern day

While the idea of stock exchanges—markets where securities can be bought and sold—is mostly synonymous with Wall Street, the New York Stock Exchange, and other modern markets, places to buy and sell financial instruments have a long history....

Beanie Babies used to be viewed by some as alternative investments

Beanie Baby stuffed animals were once a hot collector item with skyrocketing prices as people believed that the toys would significantly grow in value over time.

In 2024, Americans bought over $7B of cut flowers

That's more than any other country in the world. Most of the flowers Americans purchase are imported, creating an economy that's both booming and reliant on dwindling natural resources.

The world of rare and expensive Pokémon cards

The rising value and popularity of Pokémon trading cards is driven by nostalgia, influencer culture, and the launch of Pokémon Go. Fans of the decades-old Japanese game are now seeking to buy rare cards in mint condition for thousands of dollars, sometimes even millions. Learn more about the frenzy to collect these rare cards, and how influencer Logan Paul helped boost market interest in this article.