Tulip Mania, which peaked in the Netherlands between 1634 and 1637, is often cited as the first recorded speculative “economic bubble.” During this period, the contract prices for bulbs of the newly introduced and fashionable tulip reached extraordinarily high levels. At the height of the craze, a single bulb of a rare variety—such as the feathered Semper Augustus—could cost more than a luxurious house in Amsterdam or enough grain to feed a village for a year.

The market was driven by “broken” tulips, whose unique, flame-like patterns were actually caused by a mosaic virus. Since these patterns were unpredictable and beautiful, they became ultimate status symbols. However, the bubble burst abruptly in February 1637 when buyers simply stopped showing up to auctions, causing prices to collapse overnight. While historians debate the actual extent of the economic ruin felt by the general public, Tulip Mania remains the definitive historical metaphor for the dangers of irrational exuberance and speculative markets.