What was the name of the 1720 collapse of France’s Mississippi Company share bubble?

The Mississippi Bubble was the 1720 collapse of France’s Mississippi Company share bubble.

The company, associated with Scottish financier John Law, received valuable trading and colonial privileges and became linked to France’s paper-money system. Excitement about its supposed wealth in Louisiana encouraged investors to buy shares at rapidly increasing prices. Speculation intensified as shares were traded in Paris.

Confidence collapsed in 1720 when investors sought to convert paper assets into hard currency. The share price fell dramatically, damaging many investors and undermining John Law’s financial system. Law left France later that year.

The Mississippi Bubble is often discussed alongside Britain’s South Sea Bubble, which also collapsed in 1720. They were separate schemes in different countries, although both demonstrated how promotional stories, easy credit, and speculative crowds could drive prices far beyond realistic expectations.