Top 5 Most Bizarre Bubbles in History…


In this video we’ll dive into the fascinating World of Financial bubble and Top 5 most
Interesting and bizarre one so let’s get to it the dutch tulip up as much as the tulips are associated with holland It is not
Native There Rather That Was Introduced in 1593 By a Botanist Who brought it from
constantinople and he planted a Small Garden Intending to research The Plan for medicinal
Purposes had his Neighbors Spent morally upright The tulip might Have still Been a rare exotic in the gardening World Instead They broke into his
Garden and stole Some of The Bulb in order to make some quick Money
and in the process started The dutch tulip trade Over the Next several Decades
Tulips became a Fad Among The rich and halla and the prices Began to now soon even ordering Bulbs were selling for Extraordinary
Prices and Actual rare Bulbs were
Astronomically Priced and The Height of the Mania in What Seems like a complete loss of Sanity The balls were Deemed to value rescue and
planting them by Their Wealthy Purchaser and It Became Popular Thing to display the Plain Bulbs in at least one instance
The Plan for Safety Backfired When visiting Sailor Mistook The tulip Bulb for an onion and
Proceeded to eat It for breakfast at the Height of the bible Was reached in the Winter of
1636 tulip traders were making and Losing Fortunes Read
Regularly and a Good trader could Earn Up to sixty Thousand Florins in a Month Approximately
Sixty One Thousand Adjusted to current us dollar Was profits like those to be had nothing local Governments could do to stop
Frenzy Of The trading and The price of the ball Was more Expensive Than a Luxurious house in the best Neighborhood
in holland Then One day a Harlem Buyer Failed
To show Up and pay for his bulb purchase and somehow That Triggered a Panic across Holland and Was in Vaes
Tulip Bulbs were Worth Only One Hundreds of The Reformer price and the tulip bubble had burst
Number two the sell see bubble the south sea bubble Was a Classic and It Really Was a Birth Went for first stock
promoters It Was a Company Based Out of United Kingdom quite exclusive rights to treat with south
America and It Sounded Like a Great Plan due to
Successes of East Indian trade Company and a Very strong backing From the Government of United Kingdom The stock Was already Doing really
However due to the limited scope of
Opportunities and Based on the Way the deal Was structured with spain the Company Was Left was Very few
Option of How you could operate and It Was Really all They could do Is do slave trade so the stock Was traded at
128 pound and the management tried to grow the Valuation so Instead of
diversifying and trying to grow Up the scope of Their operation
And increase its Fleet size and Actually Trying to run the business and management took a Very different approach
So in an effort to stir up popular interest in the company’s stock that Erectors
Circulated false Claims of Success They Began to braaap Journalists to talk about them They also paid to make
Paintings of The Riches of the colony and to be honest the promotion Work and the sells see bubble Began to develop and a General
Interest in Joint venture investment opportunities also Begin Pick Up and the company is talking about going all the Way Up to
550 pounds and other People Saw The Riches that the management of The south sea company
created and Started Issuing Shares in korea Neurone
However the management of southie wanted to own its own piece so they struck a Deal Was the government to introduce legislation
requiring all Companies
That issue Shares to have a Royal Charter?
and of Course They Received It and Almost no One Else did as the main Man in the company
Was quite the deal Maker and he was also Able to get the king of the united Kingdom on the Board Which gave the company
immense proced and the stock Ended Up going all the Way Up to a Thousand and Fifty Pounds as share However
Like All Things The Mismanagement and the fact That there were losing Ship and huge logistical
errors and Poor Business
Acumen Had to come out at some point and the rumors Began to spread and the stock Ended Up going back down to where it
came from to about Hundred Pounds a share
However the Company Still Survived but It Didn’t Wipe Out a Lot of People Along The Wick Number three the
Mississippi Bubble This bubble is out of all the Ones in this video has the most Things going on and Makes It Very Very
interesting and It Really Shows a Bad problem that finance has if too Much Power is Given to anyone
So let’s Get sir with the background so the in 18th Century
The French economy Was Having a Bit of a Rough time due to past Wars her there was some bright light and then The Tunnel
As French for the first settle in the north America so the main Character of This Story is Named John Law Who was scottish
Financier Born in edinburgh Who was the type of a Character Who was Very
colorful and charismatic and Was a Passion for Women and Gambling as The Result of That he developed a Pretty close relationship
Was the King of france and That Led Him to be Able to do very interesting Things
As the King Trusted Him very Very much so mr
Lan did Two Things Really Well His first he introduced Paper Money into the economy no friend and it Was one of the first countries
to
Advanced into This and move Away from the coin in the 18th Century and yes he did that have that Kind of Power he pretty
Much took his first central bank in france What Was more interesting is not this event but more What it Allowed him to do
Similarly to the south sea bubble he acquired exclusive rights to tree along the mississippi River
In north America and Then he went on to proceed on sale of stock to
consolidate Other trading Under One Roof as Well as This entity Ended Up having control of All
Trading That France did Was all countries outside europe Making a Very appealing
proposition and the Fundamentals of these deal Unless This unlike The south sea company were Very
Very strong and Indeed he had a Lot of Potential and had a Lot of Play However once again
Instead of focusing on how to run the business and develop the route and grow the company’s
Revenue and in order to pick the price of a Stock Up Mr
Lorent to Financial engineering Instead since he had the control of the Money Supply of france and
essentially he was the sole central banker and
Also Controlled all The trade on top of that so he started a Whole New stock Market Friends he since the 10th of this
Combination and Invention of The New Paper Money so to get People
Exposed to it since so what did he do to begin This friend so if you’re interested in getting a Certain stock
Certificates in This Company You Actually had to use paper Money and
Investors All Across france and Europe Eagerly Played in This Market and the Financial
District in Paris Became so agitated at time with investors that soldiers Would be sent in at night to maintain order
so shares in the mississippi Company Started Around 500 lieber’s Which Was a French Union our Currency then By december of
1719 Shares Prices Have Reached
10,000 livre per one stock another trick that he implemented was that You could buy Shares with Government’s Debt Which Helped Him
Consolidate the government’s Depth as well so he controlled the trade all the government debt and all the issuance of Money Under
One sole Entity Which Was mr. Long But Here’s What Mr
Raw Really Brought The World he created the first Batch of millionaire and This term did
Originate from Fran and he was at the Height of It all and Now This tram Is commonplace all Over the world and
Technically Mr. Long Was the first so-called millionaire However she has over However His?
Over-engineering Led to a disaster The attempted Turned stock Shares into Money
Resulted in a Seven Doubling of Money Supply and Friend It is not surprising that the
Inflation started to take off and Inflation Reached a Monthly Rate of 23% in January 70 20 in law
Devalued Shares in the Company in Several Stages During
1720 and the value of Banknotes Was Reduced to 50% of their face value By September of
1720 and the price of Shares of The Company had Fallen to
2000 lever and by The end of december They have Fallen all the Way down to Just
400 liebherr per share
Which is where they have Been at the beginning from the start and it Was quite a ride and Law Ended Up moving back to
Scotland and being a Drunk However he did create a Lot of Wealth and Wiped Out a Lot of Wealth Along The Way
Number 4 The dot-Com bubble The dot-Com bubble Is Very interest and It was also quite Unique because as Opposed to an individual
Security the entire sector of the Market followed the me but sir Was a Few Things that led up a bubble Very
important Thing That Allowed
Dot-Com Bubble To occur Was the rise of online
Brokerage Which gave access to retail investors to buy stocks Very easily It was Very Very low Commission Just over the internet from there
computer in the mid-to-late 90s the society Expectation What the internet could offer were very Very Unrealistic from
Individual Dreamers To Major
Corporation The internet entrepreneurs were enamored with dreams of Becoming the dot-com
millionaire and stories Began to run of People Making Fortunes Overnight Which led to the case of Investors abandoning
Fundamental in search For the Next big Thing as consumers clog The internet and investors were afraid That not becoming
Involved be a huge Missed Opportunity
so venture capital Company and Speculators poured Money into the internet startup during the
1990 in the hope of these companies Would One day become profit the stocks in the tech sector Began to rise Rapidly
and and They epitome of It all Was if any Company Added
Com ending to its name the price of a stock tripled so in the 1999 there were
457 ipo most of each were internet and technology Related of Those for
157 ipos
117 of Them Doubled in price the first day of trading and Then Things peaked at Around
2000 super Bowl Which Featured 14
commercials From different Comp Company and Those super had super Bowl and Aren’t she one of them was pest calm However
As The time went on the companies did not end up meeting those High?
Expectations It Was Nearly impossible to be Able to do it though
So and the Market begins to dwindle and on the March 10th of
2000 it all came Crashing down for Example Amazon stock went from
107 dollars a share At 7 in a mere Month And
Hundreds of Company Ended Up going Out of Business as They could Not secure any more
Financing Forget anymore Money and Their Burn rate Work you and one of the companies that Actually went out of Business Which was pets.com
Had a
300 million dollar Valuation
Which went to zero
Number five in the United States Housing bubble This bubble Was One of its Kind event and It Was a bubble of a
proportion That World Has Never Seen before
and It affected Not Just The United States but The entire World Now What Happened well it’s not as complicated as some People think and
Majorly Comes Down to one Thing Which is called Financially
Which were the cdos Which allowed banks to
Offload The Loans that They have made to other investors turning into a Financial instrument in other Words Whereas before the banks were
Monitoring Their Landing Policies Very Closely as They were
Loaning Their own Money and did not want People to Default on them Was this innovation However the Main Could
underwrite the Loan Sell The Paper
representing The Loan The Next day to investors Get the Money back
Take Through a Little Fee and Loan Out the Money again and again and Again to whoever Would buy whether it’s another bank Whether it’s
a country Whether it’s
Individual Investor or Whoever Now it means that the person who got the loan almost Money – However Holds The Paper Now well why is
That so bad because now the banks were
Incentivized to loan as Much Money As possible and They made billions off of the Fees that the from underwriting
Now Why they don’t all collapse well the issue is a Little Bit more complicated but can Be Explained Very easily
See you see the interest that the bank Charges Two People is not Dependent on the bank itself is
Dependent on the Federal reserve and the Main interest comes from them so When Federal reserve Kept Raising Their Rates and
People’s
Mortgage Payments Kept Going Up and Up and up Until they could not Pay them in What Would Happen well when you can’t afford to
Pay For Your house anymore you Try to sell it or if you don’t pay or you don’t sell the bank takes the house and
They Try to sell and What happens When Everyone tries to sell the house at the same time it no One buys it
That’s right The prices collapse so this collapse in One Market and
Which is was to market a Blown sent shivers Through The entire economy
Because It Was the Bedrock of the us economy and not Just the united States But countries
Whose Banks Owned alone and The stock Markets all Across The World Began to climb the dow Jones Which consisted of the most iconic
Companies in the World went from Fourteen Hundred and
Fifty and lost more Than Half its value in went down to as low as Seven Thousand millions of People Lost Their Jobs Their
Fortunes in their home and There’s The Result of This so-Called
Financial innovation and The Poor underwriting practices in the big banks Inlet 2 and Trouble However as
Americans Always Do It Depict Themselves Step back Up They rebuild the economy
and Now the stock Market is doing Better Than Ever so this concludes This video i hope you really enjoyed It and will Keep Making
These videos
As I’m really passionate about pie net and let me know what you think about these bubble once a Year you feedback What can you
Learn From them

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