Which 1720 speculative bubble collapsed when the Mississippi Company failed in France?

The 1720 speculative bubble that collapsed when the Mississippi Company failed in France was the Mississippi Bubble.

The Mississippi Company, directed by John Law, held a French monopoly over trade and development connected with Louisiana. Law also controlled a bank that issued paper money. Investors bought company shares in Paris, expecting enormous profits from American commerce and from the company's privileged position.

Share prices rose dramatically in 1719 and early 1720. The price increase became detached from realistic expectations about the colony's resources and trade. As investors tried to convert paper wealth into hard currency, confidence broke down. The company and Law's financial system collapsed, producing heavy losses and a major monetary crisis.

The Mississippi Bubble is often confused with the South Sea Bubble, which occurred in Britain during the same broad period. Both involved monopoly companies, speculative share buying, and public excitement, but they were separate schemes in different countries. Tulip mania, in the Dutch Republic, occurred much earlier in the seventeenth century.