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Mississippi Bubble

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Mississippi Bubble
An 18th-century speculative bubble resulting from the Mississippi Company, which had a charter from the King of France for overseas trade with the Louisiana Territory and elsewhere. The Company's founder, John Law, promoted the trade of the stock, which was guaranteed indirectly by the King. The company issued notes (through the Banque Royale) until the government admitted it did not have sufficient coinage to cover the notes it had printed. This resulted in a bank run and the burst of the bubble in 1720. The Mississippi bubble was one of the first times a bank issued paper money.


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Starting with the tulip bulb mania in the 1630s, bubble after speculative bubble has been erased from the popular memory: the South Sea bubble in the early 1700s; the Mississippi bubble, which caused a stockmarket crash in 18th-century France; the Florida real-estate bubble in the 1920s; the stockmarket crash of 1929; the stockmarket crash of 1987; the Nikkei bubble, which began in 1991; and the Nasdaq bubble of 2000.
Historic Speculative "Bubbles" Dutch Tulipmania 1634 to 1638 France's Mississippi Bubble 1719 to 1720 South Sea Bubble 1720 Roaring '20s U.
It bids fair to make the tulip mania and the Mississippi bubble look like temporary blips on an otherwise sound financial scene.
 
 
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