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Speaker 1: Originally it was called the dull band because of its

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Speaker 1: so called resemblance to a turban, and then it was

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Speaker 1: called the tool bent in Turkey, and then it was

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Speaker 1: called the tulip in France, and then in the fifteen

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Speaker 1: seventies it was called the Today we call it the

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Speaker 1: tulip ben. So you're telling me it's not because it

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Speaker 1: resembles two lips pairs together. Apparently, you know, all this

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Speaker 1: is in the eye of the beholder, Knoll. But in

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Speaker 1: this case, the name comes from the resemblance to a turban.

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Speaker 1: That's right, because it came from the continent of Asia,

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Speaker 1: right it did. It came from Western Asia, from Turkey.

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Speaker 1: And the earliest known instance of a tulip flowering in

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Speaker 1: cultivation they were just growing wild beforehand, is in fifteen

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Speaker 1: fifty nine guy named Johann Heinrich Herwart grew the tulip.

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Speaker 1: I don't know if you're a fan of flowers or

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Speaker 1: if our super producer Casey Pegram is a fan himself. Well,

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Speaker 1: casey Pegram is a flower in the desert as far

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Speaker 1: as I'm concerned to rose in the concrete, yes, exactly exactly.

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Speaker 1: So what about you, Noel, are you uh would you

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Speaker 1: say your pro flower. Well, I am, but I I

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Speaker 1: kill them. So I am more of a succulent guy

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Speaker 1: because they're a little more, um, a little more sturdy,

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Speaker 1: shall we say, a k A a little more resilient,

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Speaker 1: and I I don't kill them quite as often, but

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Speaker 1: I still manage. I still manage. Yeah, succulents will be

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Speaker 1: more hardy, for sure. I always thought one of the

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Speaker 1: toughest flowers to grow was the orchid. I only know

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Speaker 1: one person who has a magic touch with orchids, and

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Speaker 1: that's my mother. I don't know how she does it,

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Speaker 1: because she's made of magic. Ben she's made of magic perhaps,

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Speaker 1: and she would be making a mint allegedly had she

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Speaker 1: gone into the tulip game at a certain point in time.

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Speaker 1: Because nowadays it's pretty easy to buy tulips. You could

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Speaker 1: go to your local nursery, you can go to your

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Speaker 1: local even um a hardware store will have some tulips

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Speaker 1: for sale. Often, like I think a dozen or so

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Speaker 1: bulbs I found online for about eighteen dollars or something.

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Speaker 1: And um, you know that's for every possible type of

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Speaker 1: variety you could think of. Um, we're talking about a

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Speaker 1: time where the price of tulip bulbs. We just went

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Speaker 1: completely bonkers, absolutely bananas. So I propose we tackled today's

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Speaker 1: episode in the following way. Let's tell the story that's

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Speaker 1: most familiar to everyone, and then let's after that see

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Speaker 1: how much of this stacks up. You know what a

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Speaker 1: fact in the fiction actually are. It's the only way

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Speaker 1: to do it, Ben, Yeah, alright, So in the early

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Speaker 1: seventeenth century, the Dutch Republic experienced what a lot of

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Speaker 1: people will tell you was the first example of an

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Speaker 1: economic boom and bust. Right. We we know about this

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Speaker 1: kind of stuff here in the US today with the

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Speaker 1: housing bubble that burst in two thousand and eight. We

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Speaker 1: know about this in various other points in time, but

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Speaker 1: people will tell you that the Dutch Republic in the

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Speaker 1: early seventeenth century the six hundreds, experienced the very first

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Speaker 1: recorded economic bust and it was called to Lippmania, to Lipmania,

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Speaker 1: to Lippmania. So what happened exactly, Well, it all revolves

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Speaker 1: around the idea of speculation. Speculation being predicting what something

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Speaker 1: will be worth in the future and placing your bets

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Speaker 1: that it will be worth that or more, and then

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Speaker 1: the bottom drops out potentially when that spec LiTi price

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Speaker 1: reaches completely disproportionate heights with the thing itself. Does that

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Speaker 1: make sense? Yeah? Yeah, and all of a sudden becomes

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Speaker 1: overvalued or people realize it's overvalued for a series of

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Speaker 1: reasons that we'll get into, Yes, yeah, for a series

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Speaker 1: of reasons that can vary depending on the specific cases.

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Speaker 1: In the case of tulips, essentially, the way you'll hear

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Speaker 1: this story pitch is that people in the Dutch Republic

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Speaker 1: went absolutely bonkers for tulips, began paying exorbitant rates for them,

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Speaker 1: that it gripped the country and then eventually that's the

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Speaker 1: sound of a bubble popping. But how do we get here?

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Speaker 1: What made tulips so popular? Let's starts earlier than this fellow,

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Speaker 1: but he's kind of the main dude that really introduced

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Speaker 1: tulip culture into the Netherlands. His name was Coralis Clusius,

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Speaker 1: and he created a very very influential garden at the

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Speaker 1: University of Leiden and that in the late fifteen hundreds.

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Speaker 1: Um he started this kind of tradition among horticulturists which

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Speaker 1: became kind of a gentlemanly pursuit of trading, you know,

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Speaker 1: clippings and seeds and all kinds of you know, tulip

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Speaker 1: related things bulbs between each other in the interest of

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Speaker 1: kind of spreading this tradition around. But it was within

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Speaker 1: a very small set of very particular types of learned individuals, right.

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Speaker 1: But then it kind of started getting a little bit

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Speaker 1: out of control, and instead of just doing trades, these

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Speaker 1: uh folks who had the tulip bulbs started charging money

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Speaker 1: for them, and then members of the merchant class, for example,

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Speaker 1: who wanted to flaunt their new found wealth because this

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Speaker 1: was kind of a relatively new class of people that

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Speaker 1: could afford the finer things in life. In this part

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Speaker 1: of the country, they were experiencing boom times. Um, they

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Speaker 1: decided they wanted to get in on this craze because

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Speaker 1: these flowers were very beautiful, and some of them in

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Speaker 1: particular that had kind of miscolored discolorations almost they were

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Speaker 1: even more desirable. They were like rare POGs or pokemon,

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Speaker 1: and you have to catch them all. Yes. So this

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Speaker 1: this guy, Carolus Clusius, got this whole craze going around

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Speaker 1: fifteen three, and tulips had several strong advantages that made

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Speaker 1: that set them apart from other flowers of the time. First,

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Speaker 1: and we need to emphasize this, as you said earlier,

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Speaker 1: all they had these intense colors that other plants in

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Speaker 1: the area just didn't have. Secondly, and perhaps even more importantly,

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Speaker 1: it turns out that tulips can grow pretty well in

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Speaker 1: this climate. This area the Dutch Republic doesn't have very

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Speaker 1: good soil for you know, most of the country, and

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Speaker 1: it turns out that tulips love what is called poor soil.

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Speaker 1: So not only can you have these beautiful, striking flowers,

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Speaker 1: but you can actually grow them in a successful manner

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Speaker 1: in a place where you know a lot of other

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Speaker 1: flower wouldn't grow. Here's the thing, though, Ben and I

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Speaker 1: didn't know this at all, Um, tulips take a really

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Speaker 1: long time to grow. Yeah, so you can do it

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Speaker 1: with seeds, but seeds. Tulips grown from seeds take like

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Speaker 1: up to six or seven years to grow. And then

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Speaker 1: you have I guess what would be the same as

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Speaker 1: like making a clone of any other type of plant,

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Speaker 1: But it's a bulb. I guess it's called an offshoot,

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Speaker 1: I believe, ben, Um, and those only take three or

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Speaker 1: four years, maybe even two years if I'm not mistaken.

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Speaker 1: And that was what people wanted um. And here's the

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Speaker 1: thing that's also interesting about this whole story is that

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Speaker 1: it kind of introduced some of the concepts surrounding futures trading.

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Speaker 1: Because you're not buying a full grown tulip, because you

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Speaker 1: can't uproot a full grown tulip or it will die.

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Speaker 1: You have to wait until the summer when they go dormant.

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Speaker 1: They literally go back down into these bulbs, and only

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Speaker 1: then can you dig them up. So people, these merchants,

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Speaker 1: these aristocrats, these whomever that we're just going wild for

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Speaker 1: these tulips had to buy the promise of a future

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Speaker 1: tulip right. They would sign contracts before a notary to

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Speaker 1: buy tulips at the end of the dormant season, which

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Speaker 1: was from June to roughly September. That's when you could

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Speaker 1: actually pull them out of the ground. And because of this,

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Speaker 1: the Dutch, who had already developed a lot of techniques

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Speaker 1: of modern finance, created this durable goods futures market for

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Speaker 1: tulip bulbs, and it went insane pretty quickly. You know,

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Speaker 1: because you're not buying tulips today, you're buying tulips tomorrow.

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Speaker 1: Gladly pay you tuesday for a hamburger today only the

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Speaker 1: other way around. And then when you hear that other

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Speaker 1: people in the market are paying increasingly extravagant prices, then

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Speaker 1: you start to move with the market as well, if

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Speaker 1: whether you are selling, whether you are buying, whether you

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Speaker 1: are just trading to look few ts. Yeah, and let's

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Speaker 1: remember too that these were not native to the Netherlands,

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Speaker 1: and so they were already relatively scarce because they take

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Speaker 1: so long to grow. They weren't just overflowing right there.

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Speaker 1: There was a scarcity and a rare quality to them,

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Speaker 1: and that is what drives that kind of gotta have

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Speaker 1: them all mentality, right, Yeah, if anyone could have him,

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Speaker 1: no one would care, right exactly, kind of like hammer

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Speaker 1: Pants in the nineteen eighties. I don't know, I think

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Speaker 1: we're both too young to really deliver that reference. I

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Speaker 1: just remember him, see hammer. So we said fiftee. This

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Speaker 1: is when it starts catching on the early adopters, right,

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Speaker 1: the learned fans of flowered um and horticulture start buying

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Speaker 1: up tulips by sixteen thirty three. In some transactions, tulip

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Speaker 1: bulbs actually replace currency. History Mike Dash found documentation of

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Speaker 1: actual properties being sold for what he said handfuls of

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Speaker 1: tulip bulbs, and then more and more people heard the

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Speaker 1: sort of friend of a friend of a friend's stories

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Speaker 1: about someone who got into the market bought and sold

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Speaker 1: tulips and now they're set for life. And by that

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Speaker 1: same year sixty three, when this stuff is really escalating,

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Speaker 1: a single bulb of a tulip variety called simper Augustus

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Speaker 1: was already worth five thousand, five hundred guilders. Yeah, and

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Speaker 1: simple Augustus is that one with the with the stripes.

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Speaker 1: It's got kind of red flame like stripes on it.

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Speaker 1: And this is super interesting. Um, it turns out that

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Speaker 1: the what causes that uh condition is actually a virus. Yes, yeah,

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Speaker 1: it's correct. And no one knew how to breed them too,

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Speaker 1: I mean, I've not breeds, not the right word, cultivate

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Speaker 1: them to look like that. So they tried all kinds

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Speaker 1: of crazy stuff, didn't they. Then, Yeah, they tried. They

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Speaker 1: tried a ton of very strange things. They would. Let's

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Speaker 1: see what was one of them. They buried it in

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Speaker 1: a certain type of mud. Yeah, they was pigeon dung.

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Speaker 1: I believe the pigeon guana whatever you wanna call it.

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Speaker 1: Poop there you go, that's the right word. That's the science.

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Speaker 1: That's the science word. Um. They also would even tie

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Speaker 1: like a red and a white together and then bury

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Speaker 1: them in the hopes that they would somehow commingle and

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Speaker 1: create Yeah, tulip ozmosis very much. So. My favorite is

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Speaker 1: that they would sprinkle the soil with pigments that they

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Speaker 1: would hope would somehow seep into the soil. And you know,

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Speaker 1: there was they didn't know what they were doing, no,

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Speaker 1: but they were just trying different things exactly. I think

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Speaker 1: most people at the time would have made similar attempts.

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Speaker 1: Those are just a few examples we know of, but

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Speaker 1: we know that there were many other techniques, most of

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Speaker 1: which were cartoonish failures. And this just made these failures

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Speaker 1: just made the specific types of high end tulips even

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Speaker 1: more appealing. Now we see the market exploding, you would

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Speaker 1: think maybe that by six thirty three someone would have

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Speaker 1: looked around, seen a Simper Augustus bulb and said, I

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Speaker 1: don't think this is really worth five thousand, five hundred guilders.

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Speaker 1: But no, the bubble kept growing. Yeah, and we actually

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Speaker 1: had um situations where these deals were being made in

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Speaker 1: back rooms of like ends and pubs and stuff, and

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Speaker 1: it was all pretty organized. They apparently are these smoke

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Speaker 1: filled rooms where people were getting their drink on and

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Speaker 1: their smoke on, and um, they had like these pieces

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Speaker 1: of wood that they would write they would essentially bid

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Speaker 1: on these tulip lots. And it was like, I don't know,

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Speaker 1: I saw this fantastic video series on YouTube that I

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Speaker 1: was telling you about. Ben I think you had seen too,

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Speaker 1: on a channel called Economics Decoded, And uh, the guy

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Speaker 1: I don't see his name here doesn't really announce himself

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Speaker 1: for lower third himself, but he does a fantastic job

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Speaker 1: with illustrations and sound effects, and I really recommend checking it.

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Speaker 1: It is a three part series on tulimania and he

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Speaker 1: likens it too. If when we I had to go

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Speaker 1: and buy a stock, if we had to literally have

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Speaker 1: a conversation with a bunch of dudes in a smoky

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Speaker 1: room and arrive at an agreed upon price, because we

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Speaker 1: take for granted how quickly information travels these days, and

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Speaker 1: how that's the price of things are just set, it's

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Speaker 1: understood by algorithm, or they change in almost uniform manner,

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Speaker 1: totally uniform. Whereas this was like a series of mini

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Speaker 1: markets in different parts of the country that were pretty

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Speaker 1: isolated because you could only get information to another part

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Speaker 1: as fast as a guy could ride there on a horse,

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Speaker 1: right exactly. That's that's true. That's ah, that's something that

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Speaker 1: we can easily forget in the modern age of micro

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Speaker 1: second transactions and AI quote unquote helping people trade stocks.

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Speaker 1: So the way the story goes is that this craze continues.

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Speaker 1: Um By sixty five, you could see records of forty bulbs,

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Speaker 1: just forty bulbs being sold for one hundred thousand guilders

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Speaker 1: or florins, and by way of comparison at that time,

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Speaker 1: in the same year, one ton of butter costs around

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Speaker 1: a hundred guilders, and someone who was a pretty skilled laborer,

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Speaker 1: someone who practiced a trade of some sort like a

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Speaker 1: blacksmith or a ferrier or something, they might earn as

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Speaker 1: much as one d and fifty to guilders a year.

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Speaker 1: So this is a massive amount of money involved. And

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Speaker 1: I really enjoy the part in the tulip Mania series

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Speaker 1: on Economics Decoded where he walks us through the strange

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Speaker 1: occurrence of February sixteen thirties seven. At this point, the

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Speaker 1: price of a single Simper Augustus bulb that was worth

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Speaker 1: five thousand, five hundred guilders in sixty three is easily

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Speaker 1: worth ten thousand guilders. The center cannot hold. Things are

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Speaker 1: going to fall all apart, right, That's not what shin

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Speaker 1: Chevy was talking about in his book, but you can

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Speaker 1: see how this applies. And so according to this story,

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Speaker 1: the tuliop market crashes very very quickly, and people start

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Speaker 1: to reneg on those contracts that they had signed. So

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Speaker 1: someone would say, look, you, you owe me this much

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Speaker 1: money for these tulips, and they would just refuse to pay. Yeah,

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Speaker 1: And then they got into a real sticky situation where

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Speaker 1: the sellers had the tulips now at that delivery period

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Speaker 1: where they've gotten them out of the ground and there's

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Speaker 1: only a limited amount of time before they are going

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Speaker 1: to not be viable anymore that they have to rebury them.

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Speaker 1: But nobody's like accepting them. People are like, no, I

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Speaker 1: don't I don't want them. I'm not going to pay you.

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Speaker 1: And I think small claims Court got involved where they

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Speaker 1: had to essentially get the courts to help them come

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Speaker 1: up with a system of you know, repayment, uh that

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Speaker 1: was agreeable by both parties and ended up being a

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Speaker 1: mall percentage of three of the price promised or whatever.

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Speaker 1: Because again these futures, and again this wasn't really exactly

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Speaker 1: futures trading. It was sort of like some of the

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Speaker 1: same style of economics as futures trading, but future trading

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Speaker 1: has protections built in that this just didn't. And this

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Speaker 1: is kind of just like the Wild West. And so

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Speaker 1: you wouldn't pay full price and you'd get like a

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Speaker 1: you would get a deal because you're taking on the

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Speaker 1: risk your your tulip might not turn out, and you

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Speaker 1: don't get to just say, oh, my tulip didn't turn out,

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Speaker 1: I'm not gonna pay for it. That's technically not allowed,

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Speaker 1: even though that's kind of what these people were doing.

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Speaker 1: But it wasn't about the tulip not turning out. It

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Speaker 1: was more about the whole system kind of falling. Yeah,

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Speaker 1: and you don't pay full price, you pay a little

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Speaker 1: bit less because you're soaking up some of that risk

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Speaker 1: for the grower. Yeah. Yeah, And there's there's an interesting

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Speaker 1: step here that I want to make sure we don't miss.

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Speaker 1: Because of the precipitous rise the price of tulips, most

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Speaker 1: speculators by sixty seven and afford to buy even the

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Speaker 1: cheapest tulips. And this is what triggered the collapse in demand.

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Speaker 1: And then when the demand disappeared, the flowers quickly became

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Speaker 1: worth maybe ten per cent of what they had been

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Speaker 1: worth the day or the week before. And this this

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Speaker 1: sounds funny, this sounds like some sort of Doctor Seuss parable.

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Speaker 1: But the real time effect and the real life effect

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Speaker 1: of this is that people encountered financial catastrophe. People's lives

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Speaker 1: were ruined when the tulip trade collapsed, and as you said,

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Speaker 1: with the courts getting involved, these vicious fights over debt

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Speaker 1: continued for years and years and years, and thus the

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Speaker 1: tulip Boom and Bust of the Dutch Republic became one

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Speaker 1: of the most well known financial cautionary tales in the

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Speaker 1: Western world until about nineteen eighty when people realized that

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Speaker 1: there might be born to the story. Because it turns

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Speaker 1: out that the story we just we just related to you,

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Speaker 1: ridiculous historians, is primarily based on uh a work of

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Speaker 1: a Scottish journalist named Charles McKay. In eighteen forty one,

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Speaker 1: he wrote a book called Extraordinary Popular Delusions and the

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Speaker 1: madness of crowds. He sourced his story about this uh,

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Speaker 1: this tulip boom and bust from a guy named Johann Beckman,

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Speaker 1: who in sevent wrote a book called A History of Inventions,

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Speaker 1: Discoveries and Origins. And then Beckman's story we trace this back,

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Speaker 1: comes from three anonymous pamphlets that were published in sixteen

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Speaker 1: thirty seven, the same year everything went to pot and

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Speaker 1: they were hit pieces. Ben is slicing the air like

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Speaker 1: a knife with his hand right now, because he feels

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Speaker 1: very strongly about this, and I agree for a good

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Speaker 1: reason hit pieces. Indeed, because he had an ax to grind.

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Speaker 1: He did not like the practice of speculation at all,

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Speaker 1: and neither did McKay um. And even today, this idea

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Speaker 1: of futures is considered a moral by many, and it's

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Speaker 1: a lot of a lot of it is felt to

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Speaker 1: be a type of gambling, because you're making bets on

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Speaker 1: things that you don't actually own, right, you know what

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Speaker 1: I mean. You're taking this piece of paper it says

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Speaker 1: I own the idea of this thing what does not

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Speaker 1: yet exist, and then you're selling it to somebody else

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Speaker 1: for an inflated price based on this imaginary number. That

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Speaker 1: keeps getting higher and higher and higher. It's sort of

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Speaker 1: like subprime mortgages, for example, where um, you keep betting

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Speaker 1: on something and people don't fully understand, you know, what

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Speaker 1: the market is going to do, and then it does

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Speaker 1: a thing that no one quite saw coming. And then

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Speaker 1: all of a sudden, all those bets he made, you

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Speaker 1: gotta pay them, but nobody has the money to pay them. Yeah,

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Speaker 1: the research was not done, and at least in the

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Speaker 1: subprime mortgage crisis, there is overwhelming evidence that several people

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Speaker 1: knew exactly what was happening and just decided to let

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Speaker 1: it happen because you can make money. That's the thing

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Speaker 1: about bubbles, right, if you write it out at the

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Speaker 1: right time, you ride that wave correctly, you can make

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Speaker 1: a lot of money. And we see other examples of

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Speaker 1: this Beanie babies, that's an example. Poggs. I was talking

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Speaker 1: off air awhile back with Casey about bitcoin. Casey, do

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Speaker 1: you remember Do you remember bitcoin? I do remember bitcoin? Yes?

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Speaker 1: Are you are you involved? Are you a bitcoin er? No? No,

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Speaker 1: I I got out of bitcoin a long time ago,

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Speaker 1: so um no, I don't have a stake in bitcoin anymore.

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Speaker 1: But didn't you get out like a little too early.

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Speaker 1: I did. Indeed, Yeah, um, I bought when it was

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Speaker 1: like maybe like a dollar or something per bitcoin. Uh,

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Speaker 1: and then at its height it was worth some crazy

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Speaker 1: amount like maybe close to a bitcoin, but I sold

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Speaker 1: when it was far less than that. There's like a

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Speaker 1: lot of people who have parked way too much money

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Speaker 1: in bitcoin, who have lost a lot over the last

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Speaker 1: several months. It's it's really interesting. It's a really interesting

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Speaker 1: kind of comparison. And there are more bitcoins on the market, right,

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Speaker 1: So yeah, there's like Ethereum, there's there's a bunch, Yeah,

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Speaker 1: there's there's doge coin. Yeah, there's there's all these weird

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Speaker 1: like meme coins. And there's what I was reading about

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Speaker 1: called stable coin, which is literally just pegg to the U. S. Dollar.

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Speaker 1: So it's kind of like, what's even the point but apparently, uh,

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Speaker 1: the ideas you can kind of I don't know, longer

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Speaker 1: money with it or something, so you know, good the

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Speaker 1: world of cryptoe. So so we do see an interesting

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Speaker 1: comparison there. We also know that the tulip story itself,

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Speaker 1: the story of Tulipmania, may have been case of people

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Speaker 1: playing telephone throughout history, based on essentially works of propaganda

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Speaker 1: that we're anti speculative anonymously published pamphlets, and this means

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Speaker 1: that this means that we have more research ahead of us.

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Speaker 1: There are some wonderful books about tulip mania there too,

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Speaker 1: that are both called tulip mania, right, and the authors

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Speaker 1: of these books will assure you and assure us that

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Speaker 1: the phenomenon was actually exaggerated that contrary to what McKay says,

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Speaker 1: it was not a situation wherein every single person on

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Speaker 1: the in the nation, from paupers to royalty, were losing

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Speaker 1: their minds and gouging their eyes out to buy more tulips.

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Speaker 1: Because I learned something in this research is that the

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Speaker 1: Dutch more or less invented the model for the modern

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Speaker 1: stock exchange. So it would certainly make sense that this

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Speaker 1: was something that happened in their neck of the woods.

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Speaker 1: And they also, you know, we're a huge trading empire,

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Speaker 1: and they established New York City and um all of

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Speaker 1: you know, the Dutch East India Trading Company and all

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Speaker 1: of that. I mean, it was definitely in their national identity, right.

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Speaker 1: I think Harlem is originally a town in the Netherlands.

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Speaker 1: Harlem is where the infamous um collapse of the market

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Speaker 1: supposedly happened during that that auction where nobody bid. Yeah,

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Speaker 1: that's Harlem with two aids, right. And another thing that

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Speaker 1: I want to point out too, from from that video

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Speaker 1: series we mentioned, um, the guy in that video series

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Speaker 1: points out something that I think should not be ignored

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Speaker 1: is that gambling was a huge, another huge part of

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Speaker 1: their public their national consciousness. People would make bets on

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Speaker 1: the craziest things. I think. He points out one about

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Speaker 1: a guy who bet that he could ford a river

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Speaker 1: in a tiny wooden barrel or like a like a

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Speaker 1: trough or something like that. And I believe it was Rembrandt,

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Speaker 1: the famous painter, who bet on whether he'd be alive

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Speaker 1: the next year or not. So, I mean, it was

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Speaker 1: definitely a thing that was very popular. So it's almost like,

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Speaker 1: you know, why not, let's bet on tulips. And also

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Speaker 1: we haven't mentioned the fact that the plague was a

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Speaker 1: big part of this, and people's life expectancy was very short. Yeah,

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Speaker 1: it was kind of like, yolo, let's do this, you know. Yeah,

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Speaker 1: And with these important instrumental pieces of context, we can

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Speaker 1: unpack a little bit of the fact versus fiction around

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Speaker 1: tulip Mania. We mentioned people did have their lives ruined

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Speaker 1: financially at the time. That is true, but it may

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Speaker 1: have been far fewer people than McKay would have us believe.

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Speaker 1: In fact, some researchers have found fewer than half a

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Speaker 1: dozen people who experienced financial trouble in that time period

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Speaker 1: during the tulip boom and bust and you'll he'll hear

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Speaker 1: people argue that although prices had risen, money had not

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Speaker 1: actually changed hands between buyers and sellers, so the profits

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Speaker 1: were never realized for the sellers unless they had made

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Speaker 1: other purchases on credit, expecting their tulip money to come

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Speaker 1: in sometime between June and September. So the collapse from prices,

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Speaker 1: the argument goes, did not actually cause a ton of

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Speaker 1: people to lose real, tangible money, just had a series

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Speaker 1: of interesting, increasingly desperate conversations. Yeah, it's actually, um, really

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Speaker 1: cool that we got to do this story because I

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Speaker 1: just the other day was asking my girlfriend's um stepdad. Uh.

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Speaker 1: He's a big Scotch fan, and I was something I

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Speaker 1: think I've always wondered. I asked him, was how is

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Speaker 1: it sustainable to have these Scotches that you age for

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Speaker 1: twenty thirty years or whatever and have that be viable

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Speaker 1: when you need to be selling stuff, selling product right away.

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Speaker 1: And I think I'm explaining this right, but it was

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Speaker 1: another form of futures where you have a certain elite

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Speaker 1: that are investing in barrels, investing in particular lots or

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Speaker 1: whatever of the good stuff, the really long aged kind

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Speaker 1: of fancy stuff that they do in smaller batches in

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Speaker 1: order to finance the quicker turnaround product. And I just

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Speaker 1: thought that was really interesting that this is a very

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Speaker 1: similar example to that, Like, how do you take up

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Speaker 1: something that requires years to actually generate a tangible thing

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Speaker 1: and make that a market where people are actually gonna

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Speaker 1: pay into it, And that's that's how you do. It's

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Speaker 1: very similar to with whiskey. Yeah, wine would be another

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Speaker 1: great comparison. I believe this story, while it does seem

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Speaker 1: to have a cautionary aspect to it, and while it

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Speaker 1: does seem to be sort of a morality tale, we

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Speaker 1: know that it's been exaggerated. It hasn't been completely made up.

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Speaker 1: This really did happen, and I would say that this

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Speaker 1: means it's still functions as a crucial lesson in these

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Speaker 1: our modern days. Don't buy tulips for too much money,

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Speaker 1: you know what I mean? And don't we have to

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Speaker 1: be we have to be very cognizant and very self

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Speaker 1: aware of group think and group panics. Something like this

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Speaker 1: will come along every so often. Oh and another interesting

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Speaker 1: little tidbit I picked up along the way is that

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Speaker 1: what happens when you start um increasing supply over years

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Speaker 1: in a market that relies on scarcity right to create

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Speaker 1: the actual value of the thing itself, all of a

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Speaker 1: sudden it ain't so scarce anymore. And then people are like, well, well,

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Speaker 1: here's a here's another example that's tangentially related, and that's

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Speaker 1: a good point. Noel Opec recently met to reduce production

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Speaker 1: of petroleum, and they did that not because they were

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Speaker 1: worried about running out o reserves, but because the price

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Speaker 1: globally of oil fell too low for their liking. And now,

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Speaker 1: technically speaking, the US is to how you measured out,

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Speaker 1: the US is the world's largest producer. Interesting, right, And

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Speaker 1: that's where future is really coming to play today, is

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Speaker 1: with things like oil, like absolutely necessary tangible goods. Yeah, yeah,

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Speaker 1: it's supposed to tulips, which are kind of like frivolous

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Speaker 1: and if you heard that that money Python sketch about

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Speaker 1: the loopins. Oh yes, more, I think Gabe reminded me

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Speaker 1: of that one too. Maybe we should go out on

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Speaker 1: that because it's such a fun reminder of how third

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Speaker 1: this whole story really is. Let's do that. That's a

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Speaker 1: good idea. Thank you so much for tuning in everyone.

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Speaker 1: We hope that you enjoyed this episode. We want to

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Speaker 1: hear your opinions on other economic crazes and if you

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00:28:02,840 --> 00:28:06,280
Speaker 1: had fun listening, let us know in lieu of sending

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00:28:06,400 --> 00:28:09,520
Speaker 1: us tulips, why not head over to our Facebook page

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00:28:09,600 --> 00:28:14,080
Speaker 1: Ridiculous Historians or dropped by Apple podcast and give us

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00:28:14,080 --> 00:28:19,959
Speaker 1: a rating. My fine friends, now false moves. Please, I

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Speaker 1: want you to hand over all the loopings. You've got lupids? Yes,

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Speaker 1: loop ins? Come on, come on, what do you mean loopins?

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Speaker 1: Don't try and play for time? I'm not you mean

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Speaker 1: the flower loop in es. That's right, we haven't got

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Speaker 1: any Lupin's not. My fine friends, I happen to know

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Speaker 1: that this is the loop in. Express your tiny mind.

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Speaker 1: Get out of the coach. So much for the Loopin's.

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Speaker 1: Dan Is mord Is more galloping fruits Ward, dan Is more,

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Speaker 1: dan Is more at stays from the ridge. He gets

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Speaker 1: to the board Mr Moore, Mr Hell y'all, I'll be back.

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Speaker 1: Mr Wore,