Saturday, 29 August 2015

10 Greatest Speculative Economic Bubbles in History

An economic bubble is a very special financial term, generally known to average citizens. We all remember some interesting examples of financial bubbles from our history and economic lessons, such as Tulip Mania, where prices for tulips grew so inflated in the 17th century Holland, that people would sell their houses and livestock, to possess a bulb for a few days, with the intent to sell it for higher price in a short time frame. This rudimentary derivatives market worked great for a time, until, well, people realized, that the trading doesn't have any sound reasoning and some just refused to honor their contracts, resulting in the rows of bankruptcies. This economic fiasco ended the Dutch golden age, leading the economy into recession.

And there are some market bubbles, that have occurred only recently and is not just a funny legend, that we remember, but have probably left an impact on our wallet, as well as our mind, such as the US Sub Prime Mortgage Crises. Take a look at the infographic, designed to you by Infographic Design Services that illustrates all the famous economic bubbles in history, describing their causes, development and results for the economies.

10 Greatest Economic Bubbles in History #infographic


Quote for the day

“Tight congestions in which a breakout occurs for reasons that nobody understands are usually good risk-reward trades.” - Bruce Kovner