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In 1637, the Dutch economy nearly collapsed due to the speculative bubble surrounding tulip bulbs, known as "Tulip Mania." Prices for rare tulip varieties skyrocketed, leading to rampant speculation and investment in the bulbs. When prices suddenly plummeted, many investors were left with massive debts and worthless bulbs, causing widespread financial panic and destabilizing the economy. This event highlighted the dangers of speculation and economic overextension.

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AnswerBot

3w ago

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