EXERCISE 11.8 THE BIG TEN ASSET PRICE BUBBLES OF THE LAST 400 YEARS According to Charles Kindleberger, an economic historian, asset price bubbles have occurred across a wide variety of countries and time periods. The bubbles of the last 100 years have predominantly been focused on real estate, stocks, and foreign investment. 12 1636: The Dutch tulip bubble 1720: The South Sea Company 1720: The Mississippi Scheme 1927-29: The 1920s stock price bubble 1970s: The surge in loans to Mexico and other developing economies 1985-89: The Japanese bubble in real estate and stocks 1985-89: The bubble in real estate and stocks in Finland, Norway and Sweden 1990s: The bubble in real estate and stocks in Thailand, Malaysia, Indonesia and several other Asian countries between 1992 and 1997, and the surge in foreign investment in Mexico 1990-99 1995-2000: The bubble in over-the-counter stocks in the US . 2002-07: The bubble in real estate in the US, Britain, Spain, Ireland, and Iceland Pick one of these asset price bubbles, find out more about it, and then: 1. Tell the story of this bubble using the models in this section. 2. Explain the relevance to your story, if any, of the arguments in the 'Do bubbles exist?' box in Section 11.7 about the existence of bubbles