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The crisis dejour – throughout time, real estate markets have followed a crowd mentality. The more popular a market gets, the more individuals want to buy in, and the higher the prices are pushed up.

This mindset has occured throughout history and the cycles can be analyzed consistently. Professor Greg Watson teaches ethics and entrepreneurship and the role of the market economy. Regardless of whether we want to evaluate recent stock markets which have Broke, these fluctuations are not original. They have routinely occurred throughout time.

One of the most well known historical markets that broke was Amsterdam’s Tuplip economy. We can evaluate the Tulipmania of the tulip market that burst in 1637 as a popularly reported historical account of a economy that overheated.

Tulips were originally brought from Turkey in the early 16th century. As new “varieties” of tulip bulbs were introduced, competition intensified and their value soared. One honestly rare variety was the Semper Augustus which reached prices in excess of 1,000 florins per single bulb in 1623. This price exceeded more than six times the average annual income.

This industry mania continued – and 10 years later the price had increased another ten fold. At the market peak, the price of a single Semper Augustus tulip bulb reached 10,000 florins – the value of what it cost to buy a house in the middle of Amsterdam at the time.

With time the market peaked and there was no-one remaining who still wanted to purchase these bulbs at such high prices. Within weeks, the market price crashed and many of people were left in economic ruin.

Throughout time – we have witnessed similar bubbles develop. As the crowd mentality continues to get more hyped, those contrary views become less and less popular to be heard. Are any of the recent market bubbles any different? In today’s times of politically correct speech, are the contrarian voices that stand up for morality, ethics, and integrity any different? Throughout history, these contrarian voices have been ridiculed and ignored. But the market for products and the market for principles has a way of always correcting itself from the heat of the crowd mentality – and those polar views tend to have their bubbles burst as the required correction occurs. Today’s market is no different.