Why do markets suddenly crash after reaching incredible heights?
In short: In the 1600s, a single tulip bulb could cost ten times a craftsman's annual salary. This video explores the mechanics of economic manias and what happens when demand abruptly vanishes.
Prate Lack Singh examines the peak of the business cycle, known as a mania. Using the historical tulip craze as a primary example, the lesson investigates the transition from a nationwide sensation to a sudden market depression.
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Sources
- Summary by Intellect · source: What causes economic bubbles? - Prateek Singh
- Also: What causes economic bubbles?
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