TBT: Looking at financial bubbles, we could see that stock markets, cupcakes, tulip bulbs, and real estate have a lot in common.
Cupcakes and Other Notable Bubbles
Whether looking at 1637 or 2000, markets and financial bubbles always seem to find each other. As a surge in demand pushes prices up, the result resembles a bubble because it is full of air rather than value.
Why We Can’t Avoid Bubbles
Whether it’s tulip bulbs or Beanie Babies, bubbles start with an innovation that excites people. Then a demand surge, an unrealistic boom and panic follow.