CHAPTER 5

The Twin Bubbles of 1720; France and England gulled by professionals

Almost 100 years after the time of Tulipomania came the twin bubbles of 1720. The Mississippi Bubble was centred on Paris and the South Sea Bubble occurred largely in London. Despite their exotic names, these were crises of capitalism’s heartland. Tulipomania spread to some extent from Amsterdam to nearby cities. The contagion in 1720 spread far more decisively from Paris to London, and to other European cities, making these twin events a clear precursor to the age of globalisation.

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