What was the name of the 1720 French speculative collapse linked to John Law?

The Mississippi Bubble was the 1720 French speculative collapse linked to John Law.

John Law, a Scottish financier, established the Mississippi Company to develop French claims and trading opportunities in North America. The company’s shares became closely tied to Law’s broader monetary system, which included paper money issued through the Banque Générale and later the Banque Royale.

Public enthusiasm drove share prices sharply higher. Investors crowded into shares in Paris, expecting enormous profits from colonial commerce, even though the company’s actual economic prospects could not support the valuations. The boom attracted both wealthy speculators and ordinary savers.

Confidence collapsed in 1720 as doubts spread about the company’s earnings and the amount of paper money in circulation. Share prices fell, paper currency lost credibility, and Law fled France. The Mississippi Bubble is often discussed alongside Britain’s South Sea Bubble because both collapses occurred in 1720 and involved government connections, debt, and aggressive speculation.