South Sea Bubble

E82791
economic crisis financial bubble historical event stock market crash

The South Sea Bubble was an infamous early 18th-century British financial crash triggered by speculative frenzy in the South Sea Company’s stock, leading to massive investor losses and major political scandal.

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Statements (48)

Predicate Object
instanceOf economic crisis ⓘ
financial bubble ⓘ
historical event ⓘ
stock market crash ⓘ
cause conversion of British national debt into company shares ⓘ
easy credit conditions ⓘ
exaggerated expectations of South American trade profits ⓘ
insider trading and corruption ⓘ
overvaluation of South Sea Company shares ⓘ
speculative frenzy in South Sea Company stock ⓘ
country Kingdom of Great Britain ⓘ
effect collapse of South Sea Company share price ⓘ
damage to the reputation of the Whig government ⓘ
loss of confidence in financial markets ⓘ
massive investor losses ⓘ
parliamentary investigations ⓘ
personal bankruptcies ⓘ
political scandal in Britain ⓘ
public outrage against government and financiers ⓘ
stricter regulation of joint‑stock companies ⓘ
endTime 1721 ⓘ
hasLongTermImpact development of British financial markets ⓘ
precedent for government inquiry into financial scandals ⓘ
public attitudes toward stock speculation ⓘ
historicalContext post‑War of the Spanish Succession Britain ⓘ
historicalPeriod early 18th century ⓘ
involvedPerson George I of Great Britain ⓘ
Isaac Newton ⓘ
James Craggs the Younger ⓘ
John Aislabie ⓘ
Robert Harley, 1st Earl of Oxford and Earl Mortimer ⓘ
surface form: Robert Harley, Earl of Oxford
legislativeResponse Bubble Act 1720 ⓘ
restrictions on formation of joint‑stock companies ⓘ
location London, England ⓘ
surface form: London
mainCompanyInvolved British South Sea Company ⓘ
surface form: South Sea Company
NewtonQuote I can calculate the motions of the heavenly bodies, but not the madness of people ⓘ
notableVictim Isaac Newton ⓘ
peakSpeculationYear 1720 ⓘ
relatedCompany British South Sea Company ⓘ
surface form: South Sea Company
relatedConcept financial regulation ⓘ
joint‑stock company ⓘ
moral hazard ⓘ
speculation ⓘ
relatedEvent Mississippi Bubble ⓘ
startTime 1719 ⓘ
subjectOf economic history studies ⓘ
numerous books and articles ⓘ
political history analyses ⓘ

Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.

Tulip mania → comparedTo → South Sea Bubble ⓘ
subject surface form: Extraordinary Popular Delusions and the Madness of Crowds