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What is a Beanie Baby?

 

 

This video explains in 3 minutes what a financial bubble is and how these can be recognised, with Beanie Babies as an example.

 

What is a Beanie Baby?

Beanie Babies were introduced in the 90s by Ty Inc., an American company named after Ty Warner. These stuffed animals turned into a trading hype. Eventually traders got so obsessed with (rare) Beanie Babies that the hype turned into a financial bubble. Afterwards it seems ridiculous to invest in cuddly toys. But today we still face similar situations just as the Housing Bubble and investing in Bitcoins.

Fenna Wenselaar 2019