In 1720, the South Sea Bubble became one of history’s most infamous speculative disasters.
Founded to manage Britain’s national debt and exploit South American trade, the South Sea Company whipped up a frenzy, promising immense riches.
Shares skyrocketed 700%, only to crash 85% by October.
The company’s valuation briefly surpassed Britain’s economy, leaving thousands bankrupt when the bubble burst.
Corruption, greed, and easy credit fueled the mania. In the aftermath, reforms were introduced, but the South Sea Bubble remains a stark warning about the dangers of unchecked speculation.
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