RSPH Blogs - Finances!

  The Bust & Boom Economic Cycle: Basic Explanation Our economy constantly moves through ups and downs — often referred to as the Bust and Boom economic cycle. What Is a Bust? Bust is when an economy shrinks and share prices tend to fall — the share market turns bearish . Investors lose money, job opportunities shrink, unemployment rises, and the economy overall is in a weakened state. What Is a Boom? Boom is the complete opposite: the economy grows, share prices rise, and the market turns bullish (a "bull run"). Investors earn profits from rising prices and tend to invest more, job opportunities expand, unemployment falls, and the economy is functioning well overall. → Related: What Are Bear 🐻 and Bull 🐂 Markets? (#42) That's the basic Bust and Boom cycle — the economy's natural ebb and flow between contraction and growth. Thanks for reading.

First Economic Bubble: Tulip Mania — All You Need to Know Tulip Mania is widely regarded as history's first recorded speculative economic bubble — an episode in the Dutch Republic during the 1630s where the price of tulip bulbs rose to extraordinary levels before collapsing suddenly in early 1637. → Related: What Is an Economic Bubble? Stages of a Bubble! (#46) How Did Tulips Become So Valuable? Tulips were introduced to the Netherlands in the late 16th century and quickly became a status symbol among the wealthy. Certain bulbs — particularly ones affected by a mosaic virus that caused striking, flame-like streaks in the petals — became especially prized for their rare, unpredictable beauty. These "broken" tulips, like the famous Semper Augustus , became the most sought-after and expensive varieties, since no one could reliably predict or reproduce the exact pattern. As demand grew, so did trading. Because tulip bulbs only bloom for a short window each year, much of the ...