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| March aux puces - original flea market still popular in Paris |
A mysterious term, given that the market for fleas is limited. There are two (vaguely) plausible theories:
1. March aux puces?
The name March aux Puces is the slang term for a large outdoor market in Paris that first became popular in the 1920s.
Commentators at the time suggested that the name was based on the misconception that "because there are so many second-hand articles sold of all kinds....they are believed to gather fleas." [E.S. Dougherty, "In Europe," 1922]
2. Dutch Swamp?
Another suggestion is that the term derives from the Dutch word for swamp vlie. When Dutch settlers held markets in the then swampland that was Manhattan Island. Vlie was then confused for flea when spoken in English.
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The OED judges the Paris market explanation as the more probable.

