The famous Burlington Hotel in Dublin was bought for 228 million euros in 2007 at the height of the Irish property boom. The hotel is now back on the market with a guide price of 65-75 million euros. This one hotel is but a microcosm of the Irish property boom and bust. You can read more on this story here.
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.
