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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.

 

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

 

The video can be seen below.

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Fenna Wenselaar

2018