What was the nickname of the 1720 French financial collapse linked to John Law’s company?

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The 1720 French financial collapse linked to John Law’s company was the Mississippi Bubble.

John Law’s Mississippi Company promoted the economic potential of France’s Louisiana territory and became part of a broader system that combined company shares, banknotes, and government debt. Investors bought shares as expectations grew, pushing prices far above realistic valuations.

Confidence collapsed in 1720 when investors sought to convert paper wealth into specie and doubts spread about the company’s profits and the financial system supporting it. Share prices fell sharply, and John Law fled France. The episode damaged trust in paper money and speculative finance for years.

The Mississippi Bubble occurred in the same year as Britain’s South Sea Bubble, but they were different schemes. Both are examples of early eighteenth-century speculative manias, not names for one combined international crash.

Source: Wikipedia · fact-checked Oct. 2026

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