Beanie Baby mania was rational as there was a seemingly irreperable supply chain problem.
The floor prices dropped when the founder shocked the market by fixing the problem with a new vendor and flooding the market.
Like any good trade, there were many people hoarding beanie babies after the fundamental circumstance had changed hoping the prices “bounced back”, but that doesnt mean there wasnt a rational trade at some point.
Honestly most comparisons to speculative bubbles are wrong, whether it is about Tulips or Beanie Babies. It seems all the commodity and commodity derivatives bubbles have an economic component, and the equities bubbles are the more dubious ones, such as the South Sea Bubble or the 90s tech bubble. It makes more sense to use equities bubbles as better examples of irrational exuberance.
Aside from quickly sharing an understanding that people are being dismissive of whatever is being compared to beanies/tulips, it doesn’t convey to me that their opinion is based on knowing what they’re talking about regarding the thing being compared or the ancient bubble.
Comments
Beanie Baby mania was rational as there was a seemingly irreperable supply chain problem.
The floor prices dropped when the founder shocked the market by fixing the problem with a new vendor and flooding the market.
Like any good trade, there were many people hoarding beanie babies after the fundamental circumstance had changed hoping the prices “bounced back”, but that doesnt mean there wasnt a rational trade at some point.
Honestly most comparisons to speculative bubbles are wrong, whether it is about Tulips or Beanie Babies. It seems all the commodity and commodity derivatives bubbles have an economic component, and the equities bubbles are the more dubious ones, such as the South Sea Bubble or the 90s tech bubble. It makes more sense to use equities bubbles as better examples of irrational exuberance.
I agree, but Beanie Babies and the tulip mania are more well known in pop culture.
Aside from quickly sharing an understanding that people are being dismissive of whatever is being compared to beanies/tulips, it doesn’t convey to me that their opinion is based on knowing what they’re talking about regarding the thing being compared or the ancient bubble.