I just paid 5 million for the block that my neighbours kennel is on, its going up at 5% a week in the area.
Its like the stockmarket it always goes up so it doesnt matter when you buy.
My grandad bought a house in Tokyo in 1989, its worth heaps more now.
And his Grandad made a killing out of tulips before that, he always said to me doesnt matter what you buy son I'm sure you think there is a greater fool than you out there that will pay more, he knew i knew everything.
I guess the difference is that tulips arent like houses so the story has little significance much like the stockmarket or any other boom.
Cant beat bricks and mortar
Anyway here is my pops pops tale-
The term tulip mania (alternatively tulipomania) is used metaphorically to refer to any large economic bubble. The term originally came from the period in the history of the Netherlands during which demand for tulip bulbs reached such a peak that enormous prices were charged for a single bulb. It took place in the first part of the 17th century, especially in 1636-37.
The event is remembered in part because of its extended discussion in the book Extraordinary Popular Delusions and the Madness of Crowds, written by popular British journalist Charles Mackay in 1843, more than two centuries after the event. Mackay omitted mentioning that during 1636-37, the Netherlands suffered from an epidemic of bubonic plague, and severe setbacks in the Thirty Years War. In 1623, a single bulb of a famous tulip variety could cost as much as a thousand Dutch florins (the average yearly income at the time was 150 florins). Tulips were also exchanged for land, valuable livestock, and houses. Allegedly, a good trader could earn sixty thousand florins a month.
By 1635, a sale of 40 bulbs for 100,000 florins was recorded. By way of comparison, a ton of butter cost around 100 florins and "eight fat swine" 240 florins. A record was the sale of the most famous bulb, the Semper Augustus, for 6,000 florins in Haarlem.
By 1636, tulips were traded on the stock exchanges of numerous Dutch towns and cities. This encouraged trading in tulips by all members of society, with many people selling or trading their other possessions in order to speculate in the tulip market. Some speculators made large profits as a result. Others lost all or even more than they had.
Some traders sold tulip bulbs that had only just been planted or those they intended to plant (in effect, tulip futures contracts). This phenomenon was dubbed windhandel, or "wind trade", and took place mostly in the taverns of small towns using an arcane slate system to indicate bid prices. (The term windhandel is similar to the recent term vaporware: both have much the same metaphor.) A state edict from 1610 (well before the alleged bubble) made that trade illegal by refusing to enforce the contracts, but the legislation failed to curtail the activity.
In February 1637 tulip traders could no longer get inflated prices for their bulbs, and they began to sell. The bubble burst. People began to suspect that the demand for tulips could not last, and as this spread a panic developed. Some were left holding contracts to purchase tulips at prices now ten times greater than those on the open market, while others found themselves in possession of bulbs now worth a fraction of the price they had paid. Allegedly, thousands of Dutch, including businessmen and dignitaries, were financially ruined.
Attempts were made to resolve the situation to the satisfaction of all parties, but these were unsuccessful. Ultimately, individuals were stuck with the bulbs they held at the end of the crash—no court would enforce payment of a contract, since judges regarded the debts as contracted through gambling, and thus not enforceable in law.
Lesser versions of the tulipomania also occurred in other parts of Europe, although matters never reached the state they had in the Netherlands. In England in 1800, it was common to pay fifteen guineas for a single tulip bulb. This sum would have kept a labourer and his family in food, clothes and lodging for six months.
Charles McKay, in his book "Extraordinary Popular Delusions and the Madness of Crowds', tells a story of the time:
A wealthy merchant had paid 3,000 florins (280 pounds sterling) for a rare Semper Augustus tulip bulb, and it disappeared from his warehouse. After thoroughly searching his warehouse, he saw a sailor (who had mistaken the tulip bulb for an onion) eating it. The sailor was promptly arrested and spent months in jail.
