What was the name of the 1720 French speculation bubble that collapsed alongside the South Sea Bubble?

The Mississippi Bubble was the 1720 French speculation bubble that collapsed alongside the South Sea Bubble.

The scheme centered on the Mississippi Company, controlled by Scottish financier John Law. The company received valuable trading privileges and later took over parts of France’s public debt. Law’s system linked company shares, government finance, and paper money issued through the Banque Générale, later the Banque Royale.

Share prices rose dramatically as investors speculated about wealth from France’s North American claims, especially Louisiana. The price could not be sustained. Confidence weakened, investors sought hard currency, and the share price collapsed during 1720. Law lost political support and fled France.

The Mississippi Bubble and the South Sea Bubble were separate national schemes, although both became famous examples of eighteenth-century speculative excess. The South Sea scheme centered on a British company, while the Mississippi scheme operated within Law’s French financial system. Neither should be confused with the much earlier Dutch tulip speculation, which involved a different market and period.