... but it did prevent the speculative losses from being socialized while keeping gains private. Only people who bought tulips lost money.
It's also widely thought today that the tulip mania was brought on in part by a parliamentary decree that weakened contractual protections on tulip contracts -- making it easy to speculate on inflated tulip prices without a correspondingly strong fear of loss.
There is also a strong case to be made that, similar to the current situation, the tulip mania was prompted or sustained by a sudden increase in the monetary base. Apparently the balance sheet of the Bank of Amsterdam was surging during this period.
It's also widely thought today that the tulip mania was brought on in part by a parliamentary decree that weakened contractual protections on tulip contracts -- making it easy to speculate on inflated tulip prices without a correspondingly strong fear of loss.
There is also a strong case to be made that, similar to the current situation, the tulip mania was prompted or sustained by a sudden increase in the monetary base. Apparently the balance sheet of the Bank of Amsterdam was surging during this period.