To the Moon! - Tulip Mania - European History - Part 3 - Extra History

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  • Опубліковано 27 сер 2024
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    Haarlem 1636! It's time to go to the Tulip College and INVEST! We'll be buying up tulip contracts to sell to the next highest bidder! And then they sell the contract... and it gets sold again, and everyone gets rich in the process? I'm sure nothing could go wrong with this.
    --- Miss an episode in our Tulip Mania Series? ---
    Part 1 - NFTs (Non-Fungible Tulips): • The Worlds First Finan...
    Part 2 - Farming Gold: • Farming Gold! - Tulip ...
    Part 3 - To The Moon: • To the Moon! - Tulip M...
    Part 4 - The Crash: • The Crash - Tulip Mani...
    Part 5 - Eternal Madness: • Eternal Madness - Tuli...
    Series Wrap-up / Lies Episode - • Tulip Mania - LIES - ...
    Music From the Show - "First Financial Bulb!" - • ♫ Tulip Mania: "First ...
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    ♪ Music by Demetori: bit.ly/1EQA5N7
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    #ExtraHistory #TulipMania #History

КОМЕНТАРІ • 404

  • @extrahistory
    @extrahistory  2 роки тому +86

    ---- Sign up for Morning Brew for free today! morningbrewdaily.com/extracredits ----

    • @brynwhitehead1731
      @brynwhitehead1731 2 роки тому

      I mean, I get the idea you’re trying to express.
      But, the equation is incomplete.

    • @mathewfrench4437
      @mathewfrench4437 2 роки тому

      You gets ads but there is some interesting stuff on morning brew. i find its usually an enjoyable quick read :) either way i love extra credit and can get enough of them so its worth 😌

    • @christiandauz3742
      @christiandauz3742 2 роки тому

      Wish I can go back in time to Industrialize and Secularize the Ancient Celts

  • @augustrempelewert4377
    @augustrempelewert4377 2 роки тому +489

    The line delivery on "wait, what if they don't?" was PERFECT.
    Also, yay, someone remembered that Mennonites exist! (We don't consider ourselves Protestants, though.)

    • @angelarch5352
      @angelarch5352 2 роки тому +6

      I thought that too :D

    • @sneebysneeb
      @sneebysneeb 2 роки тому +1

      I mean, mennonites are anabaptists, correct? and aren't Anabaptists considered a protestant sect? correct me if I'm wrong, I don't mean to be rude

    • @rosiehawtrey
      @rosiehawtrey 2 роки тому +22

      Of course you don't, since they considered you to be live fire targets.

    • @000Dragon50000
      @000Dragon50000 2 роки тому +1

      I mean to an outsider on Abrahamic Religion as a whole I can barely keep track of the reasons jews, christians and muslims bicker over details so tiny as to be basically meaningless, so yeah I think EC did a pretty good job tbh hhahaaa..

    • @Menno_3
      @Menno_3 2 роки тому +4

      Pray to me child

  • @darrowgoff3256
    @darrowgoff3256 2 роки тому +740

    The practice described at 5:45 sounds more like buying on margin than short selling. Short selling is borrowing shares and selling them with the plan to buy them back and repay the loan once the shares have gone down, so you profit by the amount of the drop. Buying on margin is a bet that the price goes up and short selling is a bet that the price goes down.

    • @GaldirEonai
      @GaldirEonai 2 роки тому +82

      Yeah, that's gonna be one for the Lies episode.

    • @MrMasterprocrastinat
      @MrMasterprocrastinat 2 роки тому +53

      I was just looking to see if someone else said this before commenting myself. The explanation is also a little bit janky.
      You could do an entire series just on the history of leveraged investing and it's effect on markets. Surprises me a bit that they didn't catch the error since Extra Credits are the same folks that did such a good job with the history of banking and the South Sea Bubble.

    • @cyrusthegreat7030
      @cyrusthegreat7030 2 роки тому +11

      @@MrMasterprocrastinat Well this is more advanced than banking in the medieval ages and the south sea bubble. Still could have double checked with a financial historian.

    • @mdaghesh
      @mdaghesh 2 роки тому +11

      Nope, buying on margin is simply taking a loan from the broker to increase your buying power, the term you're looking for "is going long"

    • @EvHervey
      @EvHervey 2 роки тому +1

      Correct. And just this once, I actually looked before typing for 10 minutes. Thanks.

  • @emmamartin6719
    @emmamartin6719 2 роки тому +849

    I really appreciate the effort that goes into drawing accurate clothing styles for different regions and time periods! It’s really cool to see and is a great way to show the audience how a society differed from others, even close neighbors

    • @diranbodossian6061
      @diranbodossian6061 2 роки тому +3

      But also there's still that one Filip J. Frij character as an ongoing joke :D

  • @skykid
    @skykid 2 роки тому +434

    I like how the Netherlands basically made all the mistakes you could make in capitalism centuries ago and people still make them in the 21st century

    • @theonlyone1895
      @theonlyone1895 2 роки тому +13

      History tends to repeat itself

    • @RandomVidsforthought
      @RandomVidsforthought 2 роки тому +17

      @@theonlyone1895 It rhymes but it doesn't repeat

    • @Ronnet
      @Ronnet 2 роки тому +21

      And we all made the same mistakes in 2008 and now we're making them again. Ain't capatalism grand?

    • @pedrosampaio7349
      @pedrosampaio7349 2 роки тому

      It's like it's a part of this system or something, hmmn... No totally, just an aberration

    • @Cibershadow2
      @Cibershadow2 2 роки тому +14

      If the system is fundamentally broken then the failures can't really be prevented, only mitigated against

  • @denimadept
    @denimadept 2 роки тому +315

    That was the FASTEST 10m I've had in a while! Very well done!

    • @extrahistory
      @extrahistory  2 роки тому +40

      Thank you!

    • @nicodarsh
      @nicodarsh 2 роки тому +26

      Stop quoting my gf

    • @spazzohawk9591
      @spazzohawk9591 2 роки тому +2

      I’m watching at 2x speed too

    • @denimadept
      @denimadept 2 роки тому +1

      @Enzo Rafael Souza Silva Good point.

    • @Baelor-Breakspear
      @Baelor-Breakspear 2 роки тому +1

      @@nicodarsh this reply made my night and I needed it because my girlfriend just said the same thing to me.

  • @adrianozambranamarchetti2187
    @adrianozambranamarchetti2187 2 роки тому +339

    The wind trade actually sounds incredibly similar to the mortgage-backed securities, and the shorts on them, that caused the 2008 financial crisis.

    • @KyleRayner12
      @KyleRayner12 2 роки тому +51

      Time is a flat circle, and nowhere is that more true than in the arena of dubious market practices.

    • @hirocheeto7795
      @hirocheeto7795 2 роки тому +24

      @@KyleRayner12 Something-something capitalism something-something innovation

    • @andrewweitzman4006
      @andrewweitzman4006 2 роки тому

      The CDO's that were at the root of the 2008 meltdown were even more insidious because they were conglomerations of debt that used higher-rated mortgages to hide the fact that the rest of the CDO was full of "junk debt".

    • @demonicbunny3po
      @demonicbunny3po 2 роки тому +17

      Almost like things are cyclical and the financial institute hasn’t learned the right lessons from history.

    • @prodge58
      @prodge58 2 роки тому +17

      @@demonicbunny3po oh they've learned the most important lesson they can "It will never happen to ME, I'M too smart!"

  • @samsonsoturian6013
    @samsonsoturian6013 2 роки тому +240

    5:50 Correction: Short selling is the act of borrowing assets to sell immediately and profiting when you buy them back later at a lower price and return them. The word you are looking for is "leverage," the use of borrowed funds to amplify gains/losses.

    • @AjarTadpole7202
      @AjarTadpole7202 2 роки тому +2

      I thought it was buying on the margin
      dammit my econ class in high school has failed me once more

    • @samsonsoturian6013
      @samsonsoturian6013 2 роки тому +9

      @@AjarTadpole7202 buying on margin is borrowing.

    • @HansLemurson
      @HansLemurson 2 роки тому +2

      Amplify LOSSES? Incontheivable!

  • @abcdef27669
    @abcdef27669 2 роки тому +332

    This series is getting more and more similar to an Axterix book called Obelix and Co. Instead of flowers, it was about rocks called Menhirs.
    Also, that "Dog-Flower hybrid" would be a great Grass-type starter for a Pokemon game.

    • @fyraltari1889
      @fyraltari1889 2 роки тому +46

      Because that comic was parodying stock market shenanigans. It's no coincidence that the main Roman in that one looks exactly like then French Prime Minister (and future French President of the Republic) Jacques Chirac.

    • @andresalvarez5415
      @andresalvarez5415 2 роки тому +6

      How did you know this was in the new game

    • @idkissausername1667
      @idkissausername1667 2 роки тому +7

      um, excuse me, you forgetting the absolute GOAT that is Chikorita????

    • @tz8785
      @tz8785 2 роки тому +6

      That dog-flower seems a little inspired by the Screwball version of Daffy Duck in "Duck Amuck".

  • @tz8785
    @tz8785 2 роки тому +40

    Overlapping with last episode, there is another similarity between prized dogs (at least of today) and tulips back then: Desirability and health are not necessarily particularly closely related.

  • @Elongated_Muskrat
    @Elongated_Muskrat 2 роки тому +114

    Hope my CryptoTulips will always go up in price!

    • @Ronnet
      @Ronnet 2 роки тому +5

      Hope is just another word for delayed disappointment.

  • @firenter
    @firenter 2 роки тому +73

    "Oh, but what if he didn't..."
    xD Priceless
    Also I want a plush of that flowerdog!

  • @ZROZimm
    @ZROZimm 2 роки тому +33

    "Wait, what if they don't?" 😂 That delivery was perfect 😂

  • @Noland55
    @Noland55 2 роки тому +58

    A finance person professor of mine said that if your are going to invest in collectibles (invest as in someone later will just pay more) you should like what your buying. You may be stuck with it for a while.

  • @Achillez098
    @Achillez098 2 роки тому +188

    Had the NFT market not been crashing lately, I would have long built a rocket ship and left this planet for good. To quote a certain Tim Curry character:
    "I'm escaping to the one place that hasn't been corrupted by capitalism...SPACE!!!"

    • @cfv7461
      @cfv7461 2 роки тому +19

      Premier Cerdenko is certainly the peak of his career.

    • @ericstelzman5190
      @ericstelzman5190 2 роки тому +13

      SPAAAAAAACCCCCCEEEEEEE!!!!!!!

    • @davidwright7193
      @davidwright7193 2 роки тому +13

      I have some bad news for you. It is called Sapce X…

    • @cfv7461
      @cfv7461 2 роки тому +8

      @@davidwright7193 i'm pretty sure it's not

    • @rochenmanta838
      @rochenmanta838 2 роки тому +9

      Not been corrupted.
      YET

  • @aramisdagaz9
    @aramisdagaz9 2 роки тому +16

    In my D&D campaign, the party is attempting to debut into elven high society in order to access some exclusive clubs, and I’ve been wondering what means they could do so. Getting into the fantasy version of the tulip trade seems very appropriate. Thanks for the inspiration!

  • @nodeins1848
    @nodeins1848 2 роки тому +18

    I happy for those orphans. They got there life set up for cozy living

  • @aidenlarson9911
    @aidenlarson9911 2 роки тому +208

    “Ain’t capitalism grand?” Is my new favorite quote and I’m using now

    • @ecurewitz
      @ecurewitz 2 роки тому +21

      What could possibly go wrong?

    • @Dreagostini
      @Dreagostini 2 роки тому +17

      @@ecurewitz Now imagine that everything just goes right, but for the wrong people.

    • @dday881
      @dday881 2 роки тому

      Yes, ‘cause the only alternative is giving the army backed bureaucrats resource distribution control. Which inevitably sucks more ass.

    • @DracoMagnius
      @DracoMagnius 2 роки тому +5

      "Capitalism is the worst thing since Feudalism" was my first thought.

    • @Dreagostini
      @Dreagostini 2 роки тому +5

      @@DracoMagnius Not quite. Capitalism was needed to break free from feudalism with it's mercantile perspective of economics, which put power to individuals, broke off the "god given right to rule" of nobles and bootest manufactures over agrarian production, later leading on to nationalist movements and the establishment of nationstates.
      But as nation states, capitalism overstayed it's welcome and began to eat the people it lives on.

  • @BlazeMakesGames
    @BlazeMakesGames 2 роки тому +63

    Whether it's Tulips, Baseball Cards, Beanie Babies, or more... *recent* trends, humanity has been playing this bit for literally hundreds of years. And yet people always seem to fall for it as if it's the next big thing seemingly as soon as the last time it crashed is just far enough out of public memory. There are the lucky few that do manage to make it out form the whole ordeal and end up rolling in cash at the end of the day. But there's no such thing as a scheme that lets *everyone* get rich overnight, and inevitably the vast majority of people, usually those that weren't already wealthy, end up paying the price.

    • @srash8854
      @srash8854 2 роки тому +2

      Most people aren't informed, and/or wish to get rich quickly because different reasons. Even today, most people don't understand how finance and trades work

    • @Overhazard
      @Overhazard 2 роки тому +4

      The desire to become wealthy through little to no effort of your own has been a staple of humanity for as long as wealth existed. There has also always been people who look at the benefits without thinking about the consequences. The hard part is figuring out when that bubble may pop. Our local housing bubble, for instance, popped in the past, only to resurrect itself during the pandemic as an even bigger monster with no end in sight.
      Of course, these people aren't really too interested in something that makes everyone rich quickly, just themselves.

    • @ferretyluv
      @ferretyluv 2 роки тому +2

      The difference is I don’t remember baseball cards or beanie babies ever being traded as futures.

    • @bigsauce6645
      @bigsauce6645 2 роки тому +2

      I mean i just like having baseball cards idgaf if some random 3rd baseman becomes valuable in 2045

    • @lbrlrsfdj8895
      @lbrlrsfdj8895 2 роки тому +1

      It started in the stone Age. 'my rock is shinier than yours'

  • @ZCid47
    @ZCid47 2 роки тому +19

    I want to mention that is really cute to see how the baby is growing though out the years at the end of this episodes

  • @TurboKingCandy
    @TurboKingCandy 2 роки тому +9

    Hey @Extra Credits there’s a bit around 5:50, where y’all refer to the act of borrowing money you dont have to invest as “short selling”. But thats not what short selling is, thats known as “Buying on Marign”, which is a form of “leveraging” in the market.
    Short selling is the act of borrowing the security itself and selling it off with the intention of buying it back for cheaper. In terms of tulips, it would be like borrowing a tulip, selling it, and promising to return it at a later date, by purchasing it at a lower price.

  • @tng2057
    @tng2057 2 роки тому +13

    While tulips in the Netherlands influenced modern trade practices big time, shells being sought after in the Europe also had their role. The English company Shell in the 1800s started with importing shells from outside Europe to cater for tastes of well off Europeans, and Shell eventually also did oil business before being bought out by Dutch company Royal Dutch. Hence the company Royal Dutch Shell which later became the Netherlands’s favorite investment in the Dutch East Indies.

  • @DeHeld8
    @DeHeld8 2 роки тому +21

    The Guilder sign (ƒ) was typically placed in front of the number representing the amount, just like with Dollar and Euro notation, and not behind.

    • @wikiuser92
      @wikiuser92 2 роки тому +2

      I believe the euro sign is placed behind, actually. It is where I live.

    • @henke37
      @henke37 2 роки тому +1

      I say that symbols representing words should be treated like the word they represent. And people weren't saying guilder 20, were they? No really, were they?

    • @DeHeld8
      @DeHeld8 2 роки тому +4

      @@henke37 People aren't saying Dollar 20 either, are they?

    • @DeHeld8
      @DeHeld8 2 роки тому +9

      @@wikiuser92 I suppose it depends on the language then, in Dutch and English both the Euro and the guilder sign are placed in front of the number.

    • @Gab8riel
      @Gab8riel 2 роки тому +1

      @@DeHeld8 In Brazilian Portuguese it's the same way
      R$2,00 = Two Brazilian reais;
      US$2,00 = Two dollars;
      And so on and so forth

  • @jespoketheepic
    @jespoketheepic 2 роки тому +5

    7:54 the "...in cash!" there was so important, for all the reasons explained earlier in the video.

  • @Vonstab
    @Vonstab 2 роки тому +25

    The United Provinces very much had an aristocracy, the nobles of were even represented in the the States Provincial assembly each province. The Dutch nobles were just not dominant like say their French counterparts

  • @bradbarker4041
    @bradbarker4041 2 роки тому +5

    At about 5:50, that's a different definition of short-selling than is common. Short selling is buying a particular futures contract that supposes that the price will be lower in the future than it is currently. Borrowing money to buy financial instruments is "buying on margin."

  • @brittanys9716
    @brittanys9716 2 роки тому +5

    "As long as Person C can sell that tulip- wait what if they don't?"
    Matt that was perfectly delivered!

  • @grug925
    @grug925 2 роки тому +10

    I would love to see a dutch independence series, you talk about it so much that it has me curious!

    • @malachiphoniex8501
      @malachiphoniex8501 2 роки тому +1

      Agreed. It's like the Crimean War: so many of Extra History series have mentioned it in passing that it would be a shame not to do a whole series on it. And Dutch Independence is a BIG subject.

  • @larsvheij
    @larsvheij 2 роки тому +2

    Guys the united Provinces did have an aristocracy. Cities like Haarlem and Amsterdam in Holland were indeed mostly free of nobility, but smaller cities outside of Holland and some of the provinces did have aristocrats. A good way to check the aristocratic presents in one of the provinces or towns is by checking the local and regional councils. Checking out de Ridderschappen is also a good indication. The nobility had an especially strong presents in provinces like Overijssel and Drenthe.

  • @raphaelalexandreyensen6291
    @raphaelalexandreyensen6291 2 роки тому +1

    The way short selling works is you borrow the item (at interest, customarily) then sell it, wait for prices to go down, then buy an identical item and return it to the entity you borrow from.
    Keeping the difference as a profit.
    as long as prices go down you make money however if they rise their is no upper limit to how much you will have to spend to purchase the item to cover it. (see Wallstreet bets short squeeze)
    The Apes purchased all the shares (even the counter fit ones) meaning the hedge funds functionally had to cover more shares than were on the market which means infinite demand.
    (remember what I said about no upper limits? Combined with interest rates?)

  • @seanmcloughlin5983
    @seanmcloughlin5983 2 роки тому +8

    This is one of my favorite art styles. Everything is just adorable.
    Who’s the artists? she draws herself but it’s kinda hard to tell names besides Matt and Rob.

  • @napoleonibonaparte7198
    @napoleonibonaparte7198 2 роки тому +24

    1:11 False. They did have an aristocracy. Notably, the House of Orange.

    • @Dreagostini
      @Dreagostini 2 роки тому +3

      Aristocracy doesn't mean Monarchy. Aristocracy is if the elite is put together by nobles, in a feudal system. Like, these people get land from the king, they now rent the land or own land themselves, which is given to their children or children of other feudal lords, and if none is found it goes back to the king. If the populace votes for it's own head of (local) government, you have republic structures, in cities or the Netherlands most likely based on rich trade family elites or guilds, which is more of a meritocracy under a king.

    • @dmen89
      @dmen89 2 роки тому +3

      @@Dreagostini still the Netherlands had aristocracy, but they weren't nearly as Influencial like the aristocracy in other nations (like the UK and France before the revolution). Due to the influx of wealthy asylum seekers from Flanders (like Antwerp and Gent) the title 'Patricier' (Patrician) as a reference to wealthy person took off and crested a class of bourgeoisie where people weren't noble by birth (though most eventually married their wealth to a noble title eventually, for gits and shiggles) but we're wealthy enough to be in anything but the title itself. And they were far more numerous (due to the influx of wealthy people, grain trading on the Ostsee/Baltics and the wealth brought in by the VOC and WIC) for Aristocracy stopping to matter for aristocratic reasons. If course back then aristocracy had enough means to invest in these ventures as well so the distinction grew negligible anyway.

    • @BoxStudioExecutive
      @BoxStudioExecutive 2 роки тому +1

      @@Dreagostini No, that's feudalism. It is not aristocracy. Aristocracy is when the nobles are the only ones in positions of power.

    • @Dreagostini
      @Dreagostini 2 роки тому

      @@BoxStudioExecutive And what's the system that enables nobles being in power? Correct: Feudalism. The one is how the society is structured (feudalism) the other how the power projection is (aristocracy).
      The polish-lithuanian commonwealth for example was a feudal and aristocratic republic, in which feudal lords (noblesm aristocrats) voted for a king.

    • @Dreagostini
      @Dreagostini 2 роки тому +1

      @@dmen89 Sure, but the nobles weren't the seat of power because they were nobles or because of their ownership of land, but based on their wealth or entreprenership. Which was open to "normal", which later evolved into a rich elite class of merchants. It's similar to being noble today. It is a title which brings prestige, but it wasn't the seat of power inside the Netherlands. Money was.
      And, in that vein, nobles might existed, but without being the default seat of power, there is no aristocracy, or in other words: the rulership of the noble class, to speak of.

  • @jam8539
    @jam8539 2 роки тому +9

    early capitalism/ economics is very interesting, first the south sea bubble now this, i hope you do the bordeaux bubble as well for it seems all the great european powers where interested in massive bubble economies that burst and like all great economic scandles a scotsman was involved.

  • @Fox531CD
    @Fox531CD 2 роки тому +34

    It's Saturday afternoon and this video is still unlisted. Did something happen, or was there a change in the day/time of release? Great video, btw, but I'm still wondering why it's not public yet.

    • @extrahistory
      @extrahistory  2 роки тому +17

      The issue has been resolve! Thank you!

    • @ecurewitz
      @ecurewitz 2 роки тому +1

      @@extrahistory and I’m glad it was! Thank you!

  • @David-fl6ht
    @David-fl6ht 2 роки тому +5

    Going balls deep into Tulip calls 💎 🙌 YOLO

  • @emkultra2349
    @emkultra2349 2 роки тому +1

    shout out to the artists. I try to just listen while doing chores but always find myself watching

  • @reesehendricksen1871
    @reesehendricksen1871 2 роки тому +2

    At 2:31, I never expected a reference to Best in Show from ya’ll, but I love it.

  • @grug925
    @grug925 2 роки тому +2

    Circular Economics, my favorite practice

  • @mesiagamer5217
    @mesiagamer5217 2 роки тому +9

    And this is where all the stories of this trade comes in.

  • @Soundwave3591
    @Soundwave3591 2 роки тому +2

    8:00 _Walpole cackles menacingly_

  • @hungryepicboys8895
    @hungryepicboys8895 2 роки тому +2

    The Best in Show reference was cute- kudos to the artist

  • @jakobetrace5372
    @jakobetrace5372 2 роки тому +3

    Finally, I have been waiting for this, heck yeah

  • @BasementBerean
    @BasementBerean 2 роки тому +40

    Some nerdy types put their money in "bit-o-corn" but all the tulip investors laughed at them.

    • @PrototypeSpaceMonkey
      @PrototypeSpaceMonkey 2 роки тому +9

      I'm putting all my money in Geranium! Only problem is, you have to burn a lot of coal to make the gasses to keep your greenhouse warm.

  • @joshingaboutwithjosh
    @joshingaboutwithjosh 2 роки тому

    Appreciating depreciation along the constant of diminishing returns is something worth learning

  • @Grizabeebles
    @Grizabeebles 2 роки тому +8

    I am in awe of how this series started coming out right as "the market" is losing confidence in NFTs and more and more people are waking up to how bad an investment crypto is.

    • @Overhazard
      @Overhazard 2 роки тому

      What's kind of funny is that the music and fashion industries have just announced going all in on NFTs, with an enthusiastic response from both fandoms.

  • @happymartin6778
    @happymartin6778 2 роки тому +4

    So in this A B C deal I wonder, what's stopping C from just keeping the $200 that was double what A was looking to get it for and running?

  • @alexdillahunt6908
    @alexdillahunt6908 2 роки тому

    Love the "Best in Show" reference.

  • @dmen89
    @dmen89 2 роки тому +1

    Great vid as always.
    For any others, if you're wondering wether or not the Dutch did [a concept in finance, banking or insurance] first, often the answer is yes. We still credit the UK and/or the US as the ones to do so on extreme scales.

    • @BoxStudioExecutive
      @BoxStudioExecutive 2 роки тому +1

      I think as they said in the India series, the Dutch invented it and the British perfected it

  • @michaelkokkelink8013
    @michaelkokkelink8013 2 роки тому +1

    90,000 guilders from 1600s would be worth 5.4 million US dollars in today's value.
    Yay those Orphans are set for life.

  • @ReddoFreddo
    @ReddoFreddo 2 роки тому +1

    The act of taking out a loan you don't have the capital to cover is not what's known as short selling, I don't know what that's called, but short selling is something else, if applied to tulips it would be borrowing tulips, selling them, and then buying them back later to give back to the original owner, I doubt anyone did that back then at least with tulips.

  • @Game_Hero
    @Game_Hero 2 роки тому +2

    There is something satisfying about seeing people going cuckoo-bananas about things and saying "what could possibly go wrong" just before they crash.

    • @Dreagostini
      @Dreagostini 2 роки тому +1

      The stock market in a nutshell.

  • @zacharia9709
    @zacharia9709 2 роки тому +2

    I love this topic

  • @Packless1
    @Packless1 2 роки тому +2

    5:40 ...here in Germay it's called 'Schneeball-System' in the anglo-saxon culture they speak of a 'Ponzi-Sceme'...
    ...works fine, until somebode - usually the last one :-( wants his money back...!
    ...and there isn't any left...!
    7:00 ...it's claimed, that top-star-painter Rembrand (before he was famous) had to job as a body - i mean flower-guard to earn money for his rent...!

  • @Baelor-Breakspear
    @Baelor-Breakspear 2 роки тому +2

    2:30 has a great Eugene Levy reference. That’s a funny ass movie. Best in show I had to google it but I remember renting it at blockbuster with my mom.

  • @Pravaification
    @Pravaification 2 роки тому +4

    I... I need that tulip dog as a plush...

  • @gabrielbartlett5558
    @gabrielbartlett5558 2 роки тому +1

    Nice "Best In Show" hat tip.

  • @kakyointhatnotdead1730
    @kakyointhatnotdead1730 2 роки тому

    I compared this newest video with your first ever video and holy God you changed and grown a lot The progress is really showing in this video.

  • @YourFunkiness
    @YourFunkiness 2 роки тому +1

    5:45 I'm pretty sure that's called leveraged investing. Short selling is renting an asset and selling it, with the hope that the price goes down and you can buy it back later at a lower price, netting a profit.

  • @tulliusexmisc2191
    @tulliusexmisc2191 2 роки тому +2

    What is your source for the claim that tulip *options* were commonly traded during the bubble?
    The accounts I have read state the contracts were tulip futures, promising to pay a certain amount for certain goods at a certain time. To put it another way, the tulip farmers were selling short and the tulip-fanciers were buying long. That was common practice then as now for goods that take considerable time to grow or transport: farmers still need income during the growing season, and consumers want to know beforehand they will have something come harvest time.
    It was only after the crash (again, according to what I've read) that a small number of super-wealthy speculators retroactively changed the law to rewrite the tulip futures into tulip options, enabling them to renege on their commitments with the flimsiest veneer of legality. And of course it was the people who did the work, the farmers, who bore the vast majority of the loss.
    From our 21st-century perspective it may be difficult to feel surprise at a tiny super-rich clique cheating the rest of the country with the active connivance of the government. But it is almost impossible to overemphasise how important honesty was to early modern protestants, and nowhere more so than in the Netherlands, which relied so heavily on industry and commerce.

  • @mitcharcher8320
    @mitcharcher8320 2 роки тому

    Really love the best in show reference

  • @DadaistTheater
    @DadaistTheater 2 роки тому

    Shoutout to the Best in Show (2000) reference at 2:28. A solidly funny movie

  • @draexian530
    @draexian530 2 роки тому

    I always enjoy the bright animations.

  • @Steve0C
    @Steve0C 2 роки тому

    4:55 not sure if they are directly comparable, but this part reminded me of them explaining the synthetic CDO's in 'The Big Short.'

  • @Smytjf11
    @Smytjf11 2 роки тому +1

    Point of order, short selling is not necessarily selling something you don’t have the capital to cover. It’s selling something you don’t own (but may have borrowed). It *tends* to be related to margin (the next concept in line), but they don’t necessarily align 1:1. Example, if I were to sell a short put option, my collateral risk is the purchase price of the shares on contract. I can’t sell the contract (per my broker, thanks Tulips 😂) without first providing the capital to cover assignment.
    But I was one of those weirdos who was trading options before GameStop and the NFT nonsense got started, somehow I feel even weirder now that people actually care about my hobby

  • @larsdewit6521
    @larsdewit6521 2 роки тому +3

    Great episode, one thing tough. There was still a small aristocracy, mostly ofshoots of the HRE days the current house of Orange-Nassau is the most well known but at the time there were still a couple of families around. All besides the current Royal house lacked any political influence though.

  • @brandonlyon730
    @brandonlyon730 2 роки тому +2

    Another big speculative bubble that popped based around items was back in the early 1990’s during the comics speculator boom. Basically when it became public that the first Superman and Batman comics sold for millions and other first editions of early comics also selling for lots of money. Thinking the could make millions selling of comics tons of people began to buy a huge amount of new comics in-mass less for the stories and quality of the work and more for the sake of selling them off later, thinking that the comics they buy will eventually become valuable. With the comics industry also cashing-in on it by launching tons of new number 1’s , adding gimmick covers, trading cards, and tons of comic story shake ups that would sell like killing off Superman.
    What those people didn’t take account though was that the reasons those first edition Superman and Batman comics sold so much in the first place was because at that point they were extremely rare and few were left it readable quality, to mention they have the honor of being the comics of some of the worlds most famous heroes. During the boom the comics were made in the millions with most being just edgelord rob liefeldian crap so they were never going to be worth much to sell back .
    Eventually the speculators figured out they were buying worthless inked paper and stopped buying, comics all together this resulted in the whole comic market crashing with thousands of comic stores closing, entire comic companies shutting down, and even Marvel declared bankruptcy at that point. Even today the comics industry has never properly recovered from the crash.

    • @Overhazard
      @Overhazard 2 роки тому +1

      There is also how the quality of the writing tanked during then. The publishers figured these were being sold to collectors anyway, who wouldn't read them, so the budget was drastically cut for anything you'd never see if you never opened the comic books. That was a major part of the crash as well: because they weren't fun to read anymore, the fans left, leaving the industry without them to fall back on. Contrast this to, say, Beanie Babies, which after the crash, still had people who collected them because they liked them to keep Ty afloat.
      (The quality of the writing has gone back up, but it's currently hit-or-miss.)

  • @roberthesketh7472
    @roberthesketh7472 2 роки тому +3

    This is LITERALLY the first UA-cam video I am watching after finishing Best In Show for the first time. What an adorable reference!

  • @LangThoughts
    @LangThoughts 2 роки тому

    6:09 Ah, that makes the comparison to NFTs all the more striking....

  • @words5numbers908
    @words5numbers908 2 роки тому

    The tone change at 5:36 got me

  • @SkittytheKid
    @SkittytheKid 2 роки тому

    Aww glad those orphans got their $ b4 the crash

  • @NoName-hg6cc
    @NoName-hg6cc 2 роки тому +1

    4:50 ahhh so that's where and when creative finance was born!

  • @SakanaKuKuRu
    @SakanaKuKuRu 2 роки тому +1

    Can you imagine if a commodity called tulips suddenly appeared

  • @ordotectonicus8585
    @ordotectonicus8585 2 роки тому +1

    I knew there was gonna be an nft joke. The tulip trade just sounds like that

  • @MrKillbotlogic
    @MrKillbotlogic 2 роки тому +1

    Thanks!

    • @extrahistory
      @extrahistory  Рік тому

      Thank you so much for your support of our show! ❤

  • @MAlanThomasII
    @MAlanThomasII 2 роки тому

    I am enjoying learning about this financial bulbble.

  • @aaronpomerantz8542
    @aaronpomerantz8542 2 роки тому

    Imagine naming an inheritor in a will in order to make sure they can be supported with your life savings, then you die and they buy a paper for a flower

  • @Merennulli
    @Merennulli 2 роки тому +5

    Something tells me Morning Brew wouldn't have helped. We have access to all this info now and yet people thought they could make money investing in literally nothing, "secured" by documenting the transaction of something for nothing with a difficult to generate encrypted value. All because they labeled the nothing.
    I'm really worried about how this is going to impact C.A.R. and El Salvador. It looks like they're going to be left holding the bag after people in wealthier countries inflated it and then ran off with the money. Not that I have any respect for their governments, but when this happens it's the people who get hurt.

    • @astk5214
      @astk5214 2 роки тому +1

      people know it is a scam, they just don't know how scams work, thinking they are smart enough to profit from it

    • @astk5214
      @astk5214 2 роки тому

      and what's going on in el Salvador?

    • @Merennulli
      @Merennulli 2 роки тому

      @@astk5214 El Salvador adopted (sh)itcoin as a legal currency last year. That means it has to be accepted by businesses in the country. So as the value plummets, people are able to dump their falling assets on El Salvador, hurting El Salvador businesses in the exchange. With the recent plummet, it's already hitting the El Salvador economy as what little investment there was becomes mired.

  • @user-cd4bx6uq1y
    @user-cd4bx6uq1y Рік тому +1

    History parodies itself

  • @louisdavidson5646
    @louisdavidson5646 2 роки тому

    Short selling is essentially the act of betting that the price of an option will go down what you are looking for is the term leveraging @5.50

  • @xcw4934
    @xcw4934 2 роки тому

    I love futures contracts. The economic justification for them is that they allow farmers and organisations to lock prices in so they can confidently plant their fields or establish air routes knowing that the price they'll get for their soy beans will be exactly $x or the fuel their planes will consume will be exactly $y. That's why you only need to put down a small deposit as for all intents and purposes you're not really supposed to have the money available right now to cover the whole value of the contract (eg you haven't yet sold your air fares so you don't have the money to pay for 100% of your fuel months in advance).
    Done wrong however it's the quickest way to flush your networth down the toilet.

  • @FairMiles
    @FairMiles 2 роки тому

    The whole solution to shield the system against a potential crash was rather obvious: to register every tulip transaction in a Protestant-2-Protestant chain of blocks that would move between Colleges (for a profit in small parts of tulip) only consuming all grain and wood in the Netherlands…

  • @LallO
    @LallO 2 роки тому +4

    This is somehow as insane as the south sea bubble

  • @BloonExcluder
    @BloonExcluder 2 роки тому +1

    I was just looking at one of the Playlist and I saw this

  • @TOFKAS01
    @TOFKAS01 2 роки тому

    6:08 Not to mention the fact that the 30years war raged in neighbouring Germany. There wasnt much of a market for exports.

  • @mrmangoberry8394
    @mrmangoberry8394 2 роки тому +2

    Buys and sells make the world go round…

  • @dr.nosborn6330
    @dr.nosborn6330 2 роки тому

    Great narration and art
    Just a great episode all round about! 👍🕺

  • @harrisonlee9585
    @harrisonlee9585 2 роки тому +1

    Wouter Winkle sounds like the name of a background character from Spinal Tap

  • @robertwalpole360
    @robertwalpole360 2 роки тому +7

    I would like one flower-dog, please.

  • @thoughtfuljanitor6627
    @thoughtfuljanitor6627 2 роки тому +1

    There's something I didn't get about your example around 5:30.
    (i'll use dollars instead of guilders for ease of typing)
    So person A pays $10 to the grower, gets the contract. On lifting time, A will have to pay $90 extra to the grower. Once B buys the contract for $150, and C buys it from B for $200, who has to pay the $90 to the grower in the end?
    If it's C, then C doesn't actually profit from selling the tulip for $250 after lifting, and A ends up with a massive profit of $140 since he ended up only paying $10 for the contract and re-selling it for $150.
    If it's A, things are weird though. It implies A would show up at the grower's field on lifting, without the contract (since C has it, not A), and pay $90 for a flower now worth $250 on the market. This doesn't seem to make sense.
    So I don't really get the example

  • @willdbo
    @willdbo 2 роки тому +2

    Y'all should do a series about Caesar

  • @maxfieldjoyner5244
    @maxfieldjoyner5244 2 роки тому +1

    Is that a Best in Show reference I see!

  • @georgewright3949
    @georgewright3949 5 місяців тому +1

    The dutch bought new york for 60 guilders to give the crazy prices some context

  • @Ryu_D
    @Ryu_D 2 роки тому

    Thank you for the video.

  • @benmortimer1036
    @benmortimer1036 2 роки тому

    So I did the math, and for perspective, 9000 guilders is worth approximately $9.3 million. That is a huge amount of money, even for today, and for back then, those kids likely would have been set for life.

  • @ricksonpat4451
    @ricksonpat4451 2 роки тому

    I low key want to buy a tulip after watching this video, so pretty

  • @CoranceLChandler
    @CoranceLChandler 2 роки тому

    I love this channel
    Edit : oh, and that tulip in my bio has been there for years

  • @benjaminsteele13
    @benjaminsteele13 2 роки тому

    Hitting the pile of inheritances coming in after the plague earns a quintuple oof.

  • @bsan89
    @bsan89 2 роки тому +1

    wtf half way through the video i realized we been here before! Lmfao!

  • @church_halo1609
    @church_halo1609 2 роки тому

    Thank you for pairing with morning brew I just subscribed to them so thank you for giving me the chance

  • @sarahluchies1076
    @sarahluchies1076 2 роки тому +3

    I was wondering if the Mennonites would get a mention here. My predecessors are the Dutch Mennonites, those that were around here at this time.