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Really didn't know where to put this so I decided best to start a new thread.
In 1720, Britain’s most powerful men and even Isaac Newton himself were ruined in one of history’s greatest financial disasters: the South Sea Bubble. Shares skyrocketed a thousand percent on promises of unimaginable trade riches, only to collapse in months, wiping out fortunes across the nation. The scandal revealed how governments, banks, and elites fuel economic bubbles — and how ordinary investors are always left holding the bag.
In this episode of The Financial Historian, we break down how the South Sea Company turned national debt into a pyramid of speculation, how Parliament and King George I were complicit in the mania, and why even the world’s smartest investors were fooled. We connect the lessons of 1720 to today’s dot-com crash, the 2008 housing collapse, and the hype cycles of crypto and meme stocks.
If you want real financial education rooted in economic history, not hype, this is your wake-up call. Because every bubble follows the same pattern: illusions of wealth, protection for elites, and devastation for everyone else.
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How the South Sea Bubble Fooled the World’s Smartest Investors
Sep 18, 2025 The Financial History FilesIn 1720, Britain’s most powerful men and even Isaac Newton himself were ruined in one of history’s greatest financial disasters: the South Sea Bubble. Shares skyrocketed a thousand percent on promises of unimaginable trade riches, only to collapse in months, wiping out fortunes across the nation. The scandal revealed how governments, banks, and elites fuel economic bubbles — and how ordinary investors are always left holding the bag.
In this episode of The Financial Historian, we break down how the South Sea Company turned national debt into a pyramid of speculation, how Parliament and King George I were complicit in the mania, and why even the world’s smartest investors were fooled. We connect the lessons of 1720 to today’s dot-com crash, the 2008 housing collapse, and the hype cycles of crypto and meme stocks.
If you want real financial education rooted in economic history, not hype, this is your wake-up call. Because every bubble follows the same pattern: illusions of wealth, protection for elites, and devastation for everyone else.