By Wei-Ju Lin
When someone refers to or speaks about a classical example they refer to something that was so epic that ,“everyone”, when hearing about it should have some basic knowledge of the event. Some famous classics would be the World War, The Tale of Two Cities, Elvis, the 1995 Rugby World Cup even Star Wars. Therefore like every aspect of life, the financial sector too has it’s classic, one of which has its significant impact on the financial markets back then and still serves an important purpose today.
What purpose could classics have today? A lot may wonder, I, myself wonder about many things and this has definitely crossed my mind more than once. And only one answer fits the pattern, and that is, drum role please...if we have now past example to compare to how would we know if something is good or bad, if you have never been to Venice how could one say that it, indeed, smelled terrible? All jokes aside, the Tulip Mania was certainly one of these classics that all economists and academics refer to when they discuss the topic of a financial bubble.