Bubbles

Matt, Mike Jack

Dutch Tulip Bubble

-Happened in 1637-People payed way to much than they should of like Tulips for example-A single tulip bulb would sell for about $1,250 -A good trader could earn up to $61,710 a month-Government couldnt stop the trading-One day a Haarlem buyer failed to show up for his tulip purchase, and within days the tulips were worth only a hundredth of their former prices

South Sea Bubble

-Happened in 1720-The house of lords passed the south sea bill which allowed the south sea conpany a monopoly in trade with south america- the company underwrote the English national Debt which stood at 30 million on a promise of 5% interest from the government-Shares immediately rose to 10 times their value-Stocks ended up crashing and people all over the country lost all their money