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10 Biggest Economic Bubbles of All-Time


The economies have change over time and the type of currencies that have been used have also been different depending on the time period in question. The one thing that is for sure, is that many things that economies have been based on have deflated overtime. There have been a number of economic bubbles that have busted over the centuries. Here are some of the key takeaways from this infographic.

1) Tulip
You might think that a flower is gorgeous and beautifully scented, but that does not mean that you will invest your entire life savings in it. However, there was a time when tulip mania was in full effect. There was actually a time when tulips were a form of currency and that trades were done through the use of tulips. There were even many people that took the plunge to mortgage their properties to buy tulip bulbs. At this time, the value of tulips was higher than many homes. However, the fall in the value of tulips can fast and was steep. One day they were worth only a fraction of what they once were. This means that many people that chose to invest in tulips were left with nothing to show for it.

2) Company Shares
Some of the economic bubbles that have burst in the past are cooked up schemes. There was a time when the French government came up with a plan to help get out of debt by offering shares of a company for debt decreases. This means that people could buy up debt and get shares in return. This became a popular investment at the time, but it did not last for long. The result was that there was less metallic currency in rotation than paper currency and this caused the bubble to burst. Leaving many people with lost money.

3) Railway
Some of the biggest economic bubbles are based on new technologies. When the railway was developed, it was a major deal and a huge change. Since the price of railway shares were on the rise, more and more people were choosing to invest in them. It was in 1846 when the amount of railroads were going to increase drastically and this led to the stock price of railway shares doubling. The popularity of railroads did start to decline sometime shortly after and this resulted in the shares decreasing. The railway investment turned out to not be such a good idea after all.

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