Tulip Mania 2013 Edition
I love this credit trader’s comment I found which I cannot reproduce. After a brief run through of the day’s events where we notice PBs were the main buyers again, it went on to say that we will probably make more gains playing Big Small in Marina Bay Sands.
That is hilarious especially when Wealthy Old Friend was just telling me that he was informed by a diamond merchant that we should not treat diamonds as investments but rather, jewellery.
“At the peak of tulip mania, in March 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled craftsman. It is generally considered the first recorded speculative bubble”
“According to Mackay, at one point 12 acres (5 ha) of land were offered for a Semper Augustus bulb. Mackay claims that many such investors were ruined by the fall in prices, and Dutch commerce suffered a severe shock.” Source : Wikipedia
I have not seen so much greed in the street since the dot com boom and the frenzy to get into the market and make some money !
PB customers are saving the day, shoring up the high yielders, pouring money into Europe hoping to get a share of the rally, sweeping up the houses in London and New York, hoping to rent them out.
It is playing Big Small at the casino for the prospect of QE, Abenomics and whatever stimulus is left in the central banks’ magic bag.
One thing for sure. When a single tulip bulb sells for 10 times the annual wage of a skilled craftsman and he cannot afford one himself, that spells trouble.
Fortunately for us, we can still afford diamonds but if you ask me, there is not a better time than to play it safe as now.