Over the last few days there has been plenty of uncertainty in the global economy. Banks have failed, shares have plunged and deposits have disappeared. Even a nation has gone bust as Iceland attempts to keep the country from free falling into a recession. Not just that, the Icelandic troubles have caused ripples across Europe as many of us have our hard earned savings deposited in one of Iceland’s three biggest subsidiaries. An estimated 300, 000 British savers have high interest accounts with deposits amounting to £4 billion, which now stands frozen and no information is forthcoming although the UK’s Financial Services Authority has assured that British savers would be compensated.
The present global financial crisis is not something that erupted all of a sudden. It has been lingering over a period of time. There is some evidence to indicate the current turmoil was in part brought about by the executives using analytical and technical approaches poorly. Financial companies use analytical models to base their decisions and they have been very poor in their approach to financial management. For example, firms continued to make subprime loans even though the charge off rates were climbing. They assumed that real estate values would continue to rise and there would be more liquidity in the market which lead to a housing crisis in the world’s largest economy. Is there an end in sight? Clearly, the underlying problems will take time to work through as Governments attempt to take control of the situation.
We have seen many downturns across the centuries which have taken the sheen out of economic growth. Historians have likened the origins of the current financial crisis to the great depression of the 1870s. iTulip, a leading economic and financial news commentary site, has a great article comparing the economic crisises from two different eras. iTulip is a community of best minds in the financial sector which collectively predicts global economic patterns. Apparently, iTulip has been correctly calling economic predictions in the last decade. Strange that iTulip takes its name from a gorgeous flower – Tulips, our favourite at Arena Flowers. There certainly must be a reason!
Tulips have for a long time been associated with Holland, ever since they were brought to Europe in the 16th century. These large, showy and solitary flowers were indigenous to parts of Central Asia before they were brought to Europe. Similar to the current economic crisis, there was a period in Dutch history in the 17th century, often referred to as the Dutch Golden Age, when prices of the tulip bulbs reached extremely high levels. At the peak of this period tulip contracts sold for as much as £4 million a bulb adjusted to present day value. Much like the present day, where owning a property is seen as a status symbol, tulips held a similar status leading to speculations about pricing. This prompted the Dutch to create a formal futures market, where contracts were bought and sold at the end of the tulips season and traders took catastrophic risks similar to present day financial executives. This led to a steep increase in prices for tulip bulbs until it collapsed completely in 1637, much like the financial firms today.
While the Governments and the financial firms fight the economic demons, we recommend our customers appease those affected in the current downturn by sending a bunch of fresh, vibrant tulips from Arena Flowers. But then we would say that, as we’re a florist! We have an incredible selection of white, red, pink, orange & yellow tulips for you to choose from. Remember, tulips were, for sometime considered a form of currency and might just be the solution to the current financial crisis!
Similar Posts: If you liked this post you may find our other post The Sky Isn’t Falling In: Global Financial Troubles – Are They Real & How To Respond interesting!! You may also want to read about the Meaning of Tulips.