What was the name of the 1720 French speculative crash centered on John Law’s Mississippi Company?

The Mississippi Bubble was the 1720 French speculative crash centered on John Law’s Mississippi Company.

John Law promoted the company as a vehicle for exploiting France’s claimed territory in North America. The company also became connected to a broader paper-money and debt-conversion system managed by Law’s Banque Générale, later the Banque Royale. Share prices rose dramatically as investors chased apparently effortless wealth.

Confidence collapsed when holders tried to convert paper claims and shares into hard money. The resulting sell-off ruined many investors and damaged public trust in paper finance. Law left France after the system failed, and the episode became a classic example of speculative excess.

The Mississippi Bubble is often confused with Britain’s South Sea Bubble, which also burst in 1720. They were separate national schemes, although their timing made them part of the same wider European speculative era.