Which 1720 French company collapsed in the Mississippi Bubble, one of history’s major speculative crashes?

The Mississippi Company collapsed in the Mississippi Bubble, one of history’s major speculative crashes.

The company was connected to John Law’s financial system in France, which combined a royal bank, paper money, and shares tied to a colonial trading enterprise. Investors were attracted by extravagant expectations about wealth from France’s claimed territories along the Mississippi River. Share prices rose rapidly in 1719 and 1720, encouraging speculation and attracting people far beyond established financial circles.

Confidence broke when investors tried to convert paper wealth and shares into more dependable assets. The share price fell sharply, the bank’s paper money lost credibility, and the scheme unraveled in 1720. The episode damaged public trust in paper finance and helped shape later debates about monetary policy and speculation. It is often confused with Britain’s South Sea Bubble, which also burst in 1720, but the Mississippi Bubble was centered on France and the Mississippi Company.