At first glance, there doesn’t seem to be much connecting these three, but you would be wrong. “Bubbles” is the common factor. They come and they go – leaving a trail of destruction behind them. And the amazing this is that people (as a generalisation) don’t seem to learn from them.
Zipping through time we can see countless examples:
“The South Sea Bubble”
A really marvellous example of a Ponzi scheme; founded on nothing more than a promise (of riches) it sucked in a vast amount of money as well as a huge number of (greedy?) people. The end result was ruin.
“Tulip Mania”
I have no other words to describe this event; it was mania on a grand scale with individuals almost salivating to get a corner of a market that was, in fact, nonsensical to say the least with a single bulb costing a small fortune in the hope that one small bulb could propel the owner into stratospheric richness.
“Houses always rise in price”
A 20th Century myth of incredible proportions. And what we see now are so many house owners who, using the American phrase, have mortgages “under water” – they owe more than the value of their houses. It was good while it lasted, but good things always come to an end!
Three “get rich quick” schemes that went wrong and there have been many more in history; but the point is that which I made at the beginning - the average individual just doesn’t learn, preferring to live in the hope of health, wealth and eternal happiness rather than face up to the normalities of everyday life.
Until next time (with no house, no shares and no tulips),
Peripatetic Scribe
Nice one, P.S. If there was anything I would say to my children NOW, this would be it. Avoid the "get rich quick" approach to life and do those things you know will get you somewhere - even if it is slowly!
ReplyDeleteGood post; I would like to see many UK bankers reading this just to show them there is more to life than getting rich at the expense of others. Thank you.
ReplyDeleteI agree with the comment from UK - my "friends" on Wall Street should read and take note. People are fed up with being screwed.
ReplyDeleteHi, Anonymous in NZ - I think you're right; this is a "universal truth" - you cannot escape the realities of life hoping for money to come pouring from the clouds, you have to work at it.
ReplyDeleteThanks for your comment from UK. You have a good point, but I would also extend it to all those who try (often deviously) to get money through ways that are not 100% within the law - and I would include those who are in the "pay-day cheque" market in your country.
ReplyDeleteHi, Anonymous in USA - Wall Street is just one venomous shark; there are plenty more swimming around just waiting to grab your money under a well-prepared scheme that looks and sounds "wonderful". Caveat emptor!
ReplyDeleteA great one!
ReplyDeleteI'd like many people in Croatia to read this blog post!
Lucana
Lucana thanks - I feel one of the problems is that those who read this blog are already fully aware of the dangers I have outlined; those who are nor aware probably don't read such stuff on the internet (or anywhere else, for that matter)!
ReplyDelete