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Tulip Mania in the 17th century as the first financial bubble in history

By Antanas Jablonskis & Krišjānis Krakops

When most people think about the Netherlands, they think about, among other things, the tulip. So, it may come as a surprise for many to find out that not only does the tulip not originate from there but was also responsible for the first financial bubble in history. In the years 1634-1637, the tulip market experienced a drastic increase in prices followed by a sudden crash in February 1637. Until recently, the story of “tulip mania” has been presented as a parable about human greed and market irrationality, brought up whenever there is trouble in the economy. But some have suggested that view might not be true and that our perception of this period in history is largely misconstrued, based upon later, exaggerated stories. This article explores the environment in which the bubble took place, what made the tulip ripe for such a bubble, and how these events are perceived today.

European Investing Climate After Brexit – Ideas And Suggestions

On March 29, 2017, the British voted to leave the EU. As a consequence of that political decision, London, currently the financial center of Europe, is likely to lose some of its influence and possibly even give up its title. Which cities are to gain because of Brexit? What will attract the investments from London to other cities, that remained in Europe? What makes a good investment climate in general? We will try to answer these and related questions in our article.

P2P Lending: A Quick Way To Get Rich?

Peer-to-peer (P2P) lending is an opportunity, where individuals do not have to use an official financial institution as an intermediary. To put it simply, it removes the middleman from the process. So if you need a loan, and you have good credit, you ask from P2P lenders, they evaluate the risk, and might give it to you with a low loan rate.