We all seem to have a natural talent for knowing what things are worth, and what we will in fact be willing to pay for them. Historically, however, it has been well documented that this process can go awry. “Tulipmania” was coined when a “rare” bulb had the equivalent value of 12 acres of land in Holland (a very small country) in 1637. Some of us are content to drive a Subaru, others must drive a Range Rover. Value is in the eye, wallet, and “self-esteem system” of the beholder.The Mississippi Scheme-Bubble  (John Law, 1719), and Tulipmania are among the first and the most studied “bubbles” in (relatively) modern global finance.

In our culture it is easy to get caught up in and be seduced by trends and bubbles. If one is a collector and an enthusiast, and if you’ve ever been to at auction at Sothebys or Christies then you know full well what ‘auction fever’ can be. The excitement builds and ‘value’ is created when the hammer drops, and you’ve paid a hefty price for an object that you have fallen in love with, and which you must have.

For further study, perusal of Charles Mackay’s Extraordinary Popular Delusions and the Madness of Crowds (1852) is highly suggested.