On Wed, 4 Jun 1997, DDeBar wrote:

> Harry:
> You did better in your previous post when you said (and this is a copy):
> ( I'll add the ">"s, but nothing else)
> >Perhaps I didn't express myself very well, but before I try explaining
> >again, can you tell me about the "Tulip Panic"? I have not heard of it.
>
> The "Tulip Panic is one of the first recorded "supply and demand" problems
> to make it to the (readily available) recorded history of Capitalism. In
> Holland, in the early days of the "free market" (even then, it was not
> really free, but that's another story), some people speculated in tulip
> bulbs. After a period of much price inflation and wild speculation, the
> price crashed. Look at your history books to find out the rest...this is a
> pretty well-known event among both historians and economists.

What is the point your trying to make with this example?

It seems to me that it is a good example of the problems caused
by unencumbered speculating. People who buy and sell products PRIMARLY as
means to make money, rather than to enjoy the product or use it to
make other products, are personally responsible for causing much
havoc in the marketplace.

Speculation must always be well regulated. (Personally, I regard
speculation in the financial markets to be the lowliest form of capitalism.)

Harry Veeder