7 Economic Bubbles That Burst and Forever Altered the Course of History

2. The South Sea Bubble (1720)

In 1720, Britain was hit by the South Sea Bubble, a financial debacle centered around the South Sea Company, which had monopoly trading rights with South America. Investors were drawn in by exaggerated claims of massive profits, inflating the company's stock price. When these promises proved false, the bubble burst, causing an economic collapse in Britain. This event prompted the British government to increase regulation of financial markets, setting a global precedent for market oversight.