Which 1720 French speculative scheme collapsed alongside the South Sea Bubble?
Answer
Mississippi Bubble
Answer
Mississippi Bubble
The French speculative scheme that collapsed alongside the South Sea Bubble in 1720 was the Mississippi Bubble.
The scheme centered on the Mississippi Company, associated with the Scottish financier John Law. Law promoted the company's prospects in French territories in North America while also developing a paper-money and banking system linked to the company.
Shares rose rapidly as investors bought into the promise of immense colonial wealth. Confidence eventually failed, redemptions increased, and the share price collapsed. The episode damaged faith in paper money and financial innovation in France.
The Mississippi Bubble and South Sea Bubble were separate national schemes, but their collapses occurred in the same year. That coincidence made 1720 a landmark in the history of speculative bubbles.
Source: Wikipedia · fact-checked Oct. 2026