It began in 1716 with the establishment of the Banque Generale and the Compaigne d' Occident.
It began in 1716 with the establishment of the Banque Generale and the Compaigne d' Occident. The intention was to reduce the huge public debt accumulated during the reign of Louis XIV by selling billets d'etats to the public, and enthusiasm was such that all of Europe experienced a stock-market boom. The chief architect was an economist who invented the Scarcity Theory of Value and the Real Bills Doctrine of Money, who later died penniless of pneumonia in Venice. He was just a convenient scapegoat, as it was the French government that brought on inflation by printing too much money, which brought the whole system crashing down. For ten points, name this disaster of speculative North American real estate, the brainchild of John Law.
It began in 1716 with the establishment of the Banque Generale and the Compaigne d' Occident.
{Mississippi Bubble}