Vesten wrote:eah2119 wrote:Edit: hit quote instead of edit.
And nothing crashed. Stock markets crash. Tulip markets crash. But the iron "market" did not crash. It just became easier to get iron and the price changed accordingly and fairly.
If there was a way to prove who knew what you were talking about vs. who needed to wiki things, we'd have a much better group of people culled 
I just don't like how people use the word "crash." It has the connotation that something bad happened to the iron market. Nothing bad happened. Iron simply became cheaper.
But I suppose a "crash" is all relative. If you're selling iron and more people begin selling it for a lower price than you, then it's bad for you. If you're
buying iron and it becomes cheaper, then it's good for you.
I had watched a documentary about economic bubbles and found the tulip mania quite interesting. That's why I linked to the wiki article. Basically, people buy tulips due to a perpetual increase in price, in hopes of being able to sell it for a higher price to turn a profit. More people are always jumping into the market creating an ever-increasing demand and an exponential increase in price. The bubble "pops" when prices begin to dip. Sellers realize that if they don't sell now, they'll have to sell later for a lower price. They try to empty their supply of tulips as soon as possible by lowering the price. This all has a domino effect, collapsing the market much quicker than it was built up.
Point is, tulips do not have any profitability on their own. People bought them to sell them.
