What was the Mississippi bubble?

Answer 1

The Mississippi Bubble was a financial scheme in the early 18th century centered around the Mississippi Company, which was granted a monopoly on trade in the French territories of North America. Founded by John Law in 1717, the company initially saw tremendous growth as investors bought shares, driven by speculation and the promise of wealth from the New World. However, the bubble burst in 1720 when it became clear that the company's profits were vastly overstated, leading to a collapse in share prices and significant financial ruin for many investors. This event is often cited as one of the first major financial crises in history.