Which 1720 French speculative bubble collapsed around the Mississippi Company?

The 1720 French speculative bubble centered on the Mississippi Company was the Mississippi Bubble.

Scottish financier John Law reorganized the company and promoted its supposed opportunities in France’s North American territory, especially the Mississippi River region. The company also became connected with the Banque Royale and the management of French government finances. These arrangements encouraged investors to exchange money and government debt for company shares.

Share prices rose rapidly in 1719 and 1720 as people speculated on immense colonial wealth. The promised riches did not match the company’s actual commercial results, and confidence eventually collapsed. The resulting rush to sell caused severe financial losses and damaged faith in paper money and Law’s wider monetary system.

The Mississippi Bubble is often mentioned alongside England’s South Sea Bubble, which also burst in 1720. They were distinct companies and national episodes, although both illustrate how debt conversion, promotional claims, expanding credit, and crowd psychology can create asset bubbles.