So what is an economic bubble? Economic bubble is the price inflation of a series of assets (especially virtual capital), that is, it rises sharply in a continuous process, making its market price far exceed its actual representative value, forming a false prosperity and an economic aggregate with too many "bubbles".
For example, stories about economic bubbles are called "tulip mania" and "tulip effect".
Tulip is a kind of plant that is difficult to multiply in a short time, so it is out of stock in the "tulip craze" and becomes expensive. There are two ways to cultivate tulips, one is to start with seeds, and the other is to copy seed bulbs from mother bulbs. The former method may produce a new tulip through hybridization, but it will take 3 to 7 years to blossom.
The latter method is cultivated from the mother bulb and can bloom in the same year. A mother bulb can produce about 2 to 3 daughter bulbs, and it takes a little time for the daughter bulbs to grow into mother bulbs. In addition, many seeds and bulbs do not germinate.
For the above reasons, the planting speed of tulips can't keep up with the sudden expansion of demand.
The birthplace of tulips is said to be Tianshan Mountain. After the expansion of Otto's Turkish Empire, tulips were discovered and fascinated. After the Turks captured Constantinople (present-day Istanbul), they built a solemn palace and began to cultivate several kinds of tulips and improve their varieties. Then tulips appeared in costumes and paintings. /kloc-during the 0/6th century, tulips were widely spread throughout Europe through merchants.
Through the research of botanist Charles Kusius, people began to understand the huge varieties and series of tulips. Kusius made a detailed study of bulbous plants in Frankfurt. 1593, he came to Leiden University with a variety of tulip bulbs for further research and cultivation. At this time, tulips began to be introduced into Holland.
In the era of 16 10, well-off plant lovers were initially attracted by the beauty of tulips, because the bulbs of tulips were high-priced commodities from the beginning. Later, these gardeners and enthusiasts tried to improve their own varieties and produced many famous varieties, including famous advanced varieties, such as Admiral Livken, Admiral von Deke, Governor-General and Grand Marshal. And there is also a variety show that fans praise. Although the price of monochrome varieties is cheaper, it is above 1000 guilders, and the price will increase with the popularization of the public.
Around 1634, the popularity of tulips attracted the attention of speculators, who were not interested in cultivating tulips or appreciating the beauty of flowers, just to raise prices and earn profits. At this time, the popularity of tulips spread from Leiden to Amsterdam, Harlem and other cities, and the demand was increasing. These speculators act in a planned way, and some people spend a lot of money on it. At that time, there was even a record of a high-grade variety of light bulbs changing into luxury houses.
At that time, the price of tulips was high, which can be seen from the purchasing unit. Advanced varieties are priced by a unit weighing called AAS( 1aa = 0.05g). Two varieties are counted as one, and the two varieties are sold in bags.
The rumor that tulip trading makes people spend a lot of money in a short time is widely circulated among craftsmen and farmers, attracting them to enter this trading market. They have no funds, so they can only start at an affordable level. This situation makes the price of non-top varieties begin to rise, and people who resell for profit gradually appear. At this time, the trading mode of the market also began to change, starting year-round trading and introducing the futures trading system.
The mode of this transaction is not to go to a regular stock exchange, but to a hotel. The transaction does not need to use cash or spot light bulbs, but a bill of "payment in April next year" and "light bulbs will be delivered at that time", or the transaction can be completed with only a little advance payment. This kind of advance payment is not limited to cash, such as livestock or furniture, but anything that can be exchanged for money. Therefore, such bills are transferred several times, and even who is the creditor and who is the debtor will not know. This prepayment system has also attracted speculators such as bakers and farmers who have no funds at all to join the market, so the demand has expanded again, and even the original cheap varieties have skyrocketed.
Li Ning's "fried shoes" just took advantage of this tulip craze. They are all "celebrities", precious representatives and spiritual food; Tulips grow slowly and demand exceeds supply, and Li Ning's "fried shoes" are just in short supply.