Famous first bubbles - Peter M. Garber - 2000

Page 52

6

The Broken Tulip

An understanding of the tulip markets requires some information about the nature of the tulip. A bulb flower, the tulip can propagate either through seeds or through buds that form on the mother bulb. Properly cultivated, the buds can directly reproduce another bulb. Each bulb, after planting, eventually disappears during the growing season. By the end of the season, the original bulb is replaced by a clone, the primary bud, which is now a functioning bulb, and by a few secondary buds. Asexual reproduction through buds, the principal propagation method, produces an increase in bulbs at a maximum annual rate of from 100 to 150 percent in normal bulbs.9 A bulb produced directly from seed requires seven to twelve years before it flowers. The flowers appear in April or May and last for about a week. The amount of time required before the secondary buds flower depends on the size of the bulb produced from the bud. Hartman and Kester (1983) state that the time before flowering of a bulb less than 5 cm. in diameter is three years, of a bulb


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Articles inside

Index

9min
pages 168-176

References

3min
pages 162-167

Notes

3min
pages 158-161

Appendix 2:The Seventeenth-Century Tulip Price Data

9min
pages 146-157

Appendix 1:The Tulipmania in the Popular and Economics Literature

5min
pages 140-145

19 Conclusion

3min
pages 136-139

17 South Sea Finance Operations

5min
pages 128-133

18 Fundamentals of the South Sea Company

2min
pages 134-135

16 Law’s Shadow: The South Sea Bubble

4min
pages 122-127

Fundamentals

2min
pages 118-121

14 John Law’s Finance Operations

9min
pages 108-117

and South Sea Bubbles

2min
pages 104-107

11 Was This Episode a “Tulipmania”?

11min
pages 88-97

Bubbles

3min
pages 100-103

9 Post-Collapse Tulip Prices

4min
pages 74-77

10 Bulb Prices in Later Centuries

8min
pages 78-87

7 The Bulb Market, 1634–1637

5min
pages 56-61

6 The Broken Tulip

3min
pages 52-55

5 The Bubonic Plague

2min
pages 50-51

Futures Markets and Short Selling: The Source of the Pamphlets

4min
pages 46-49

John Law and the Fundamentals of the Mississippi

1min
pages 26-27

2 The Traditional Image of Tulipmania

2min
pages 38-41

From?

3min
pages 42-45

APreliminary View: The Mississippi and South Sea

1min
page 25

Establishment Attitudes toward

9min
pages 17-24

1 APolitical and Economic Background

4min
pages 32-37

Where Does the Tulipmania Legend Come

1min
page 16
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