What was the name of the 1720 French financial bubble linked to John Law’s company?
Answer
Mississippi Bubble
Answer
Mississippi Bubble
The 1720 French financial bubble linked to John Law’s company was the Mississippi Bubble.
John Law’s Mississippi Company received a monopoly over French trade with territories claimed in North America, especially the Mississippi valley. Law also gained control of parts of France’s financial system and promoted the use of paper money. Investors bought company shares in Paris, driving prices far above levels supported by the company’s actual profits and colonial prospects.
Confidence collapsed in 1720 when investors tried to convert paper money and shares into more reliable assets. The company’s share price fell sharply, ruining many speculators and damaging public trust in paper currency and government finance. The Mississippi Bubble is often discussed beside Britain’s South Sea Bubble, which developed at the same time but involved a different company and country. Neither episode was a modern stock-market crash in the broad contemporary sense, yet both show how credit, monopoly promises, and speculation can reinforce one another.
Source: Wikipedia · fact-checked Oct. 2026