South Sea Bubble

noun

1. history the financial crash that occurred in 1720 after the South Sea Company had taken over the national debt in return for a monopoly of trade with the South Seas, causing feverish speculation in their stocks

Word History and Origins

Origin of South Sea Bubble¹

so named because the rapid expansion and sudden collapse of investment resembled the blowing up and bursting of a bubble

Example Sentences

Alexander Pope, the poet, satirist and hapless investor, talked about bulls and bears in 1720 to describe his hopes for South Sea Company stock, while it was still zooming up in price — and before it became infamous as the disastrous South Sea Bubble.

From New York Times

I myself can’t exactly see what it’s good for, but the same question could have been asked about the joint stock company in the 1720s, when England was trying to recollect itself after the South Sea Bubble.

From Washington Post

At least the South Sea bubble of the 18th century involved fraud: Investors thought they were buying shares in a valuable company.

From Washington Post

This crash, popularly known as the South Sea Bubble, inspired a range of scrapbooks and satirical drawings that pointed to the absurdities of speculating.

From Seattle Times

“I believe this event will be recorded as one of the great bubbles of financial history, right along with the South Sea bubble, 1929 and 2000,” he wrote in a report this past week.

From New York Times