What is one thing in common between 17th Century Holland and the US in the late 2000s? That’s right, greed, that caused such economic phenomenons as Tulipomania and U.S. subprime mortgage crisis. People throughout centuries have been falling the same rabbit hole, attracted by a chance to make easy money, investing in speculative stock. We have all been there, hoping to make money and get out of the business before it crashes.
Speculative or economic bubbles – is an occurrence at the market, when stocks or services are bought and sold at the inflated prices. One of the signs that you are looking at market bubble is when people buy stock for the sole purpose of selling it later for a higher price. If no one wants actually to use the mentioned commodity, big chances are, that one day people will realize, that it is useless, and the bubble will burst.
In this infographic, we have studied and researched all the most famous financial bubbles in history, to present you all the facts about their causes, growth, downfall, and economic results. This infographic will be of use both to students and readers, intent on better understanding the economic developments in the world.
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