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

4. The Railway Mania (1840s)

In the 1840s, Britain saw an explosion in railway construction that led to the Railway Mania. Investors flocked to buy shares in new railway companies, expecting large returns. However, many of these companies were unprofitable, and the bubble eventually burst, causing a severe economic slump. This collapse led to stricter regulations on company prospectuses and more cautious scrutiny of infrastructure projects in the future.