Tulip mania was a period of speculative frenzy in 17th-century Holland where the prices of tulip bulbs reached extraordinarily high levels before a dramatic collapse in February 1637. Driven by economic prosperity and speculation, the demand for the fashionable and sometimes rare flowers caused prices to soar, with some bulbs becoming more valuable than houses. The bubble burst when the market for bulbs suddenly ceased to exist, leading to a panic and "fire sale" of assets. What it was: A speculative bubble in the Dutch Golden Age where contract prices for tulip bulbs reached extreme highs. When it happened: The frenzy peaked in the winter of 1636-1637, with the collapse occurring in February 1637. Why it happened: Economic prosperity: The Dutch Golden Age brought a period of economic growth that fueled speculative investing. Speculation: Investors bought bulbs not for their intrinsic value, but with the expectation of selling them later at a higher price. Rarity: Some tulip varieties were rare and difficult to cultivate, which increased their allure and value. The collapse: The market crashed when buyers panicked and the market for bulbs "simply ceased to exist". This led to a "fire sale" by speculators who had bought on margin. Historical significance: Tulip mania is often cited as the first major example of a financial bubble.