South Sea Bubble

Definition and stakes

Portrait of P. T. Barnum P. T. Barnum,  The Humbugs of the World

“ CHAPTER XXVI. JOHN BULL’S GREAT MONEY HUMBUG.—​THE SOUTH SEA BUBBLE IN 1720.
The “South Sea Bubble” is one of the most startling lessons which history gives us of the ease with [214] which the most monstrous, and absurd, and wicked humbugs can be crammed down the throat of poor human nature. It ought also to be a useful warning of the folly of mere “speculation,” as compared with real “business undertakings.” The history of the South Sea Bubble has been told, before, but it is too prominent a case to be entirely passed over.
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Source: Gutenberg

Various,  Blackwood's Edinburgh Magazine…

“ They may play largely, but they only do so while their hand is safe; the moment luck changes, they sell out, and leave the whole loss to be borne by the unfortunate dupes, who, believing in their deliberate falsehoods, still continue to hold on, trusting to the advent of those fabulous better times which, in their case, never can arrive. It has been so in our own times, and it was so when the South Sea bubble was expanding on its visionary basis. Multitudes of minor schemes were projected, subscribed for, and driven up to an exorbitant premium. ”
Source: Gutenberg

Portrait of P. T. Barnum P. T. Barnum,  The Humbugs of the World

“ It was a long time, however, before the tone of public credit was thoroughly restored.
The history of the South Sea bubble should always stand as a beacon to warn us that reckless speculation is the bane of commerce, and that the only sure method of gaining a fortune, and certainly of enjoying it, is to diligently prosecute some legitimate calling, which, like the quality of mercy, is “twice blessed.” Every man’s occupation should be beneficial to his fellow-man as well as profitable to himself. All else is vanity and folly.
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Source: Gutenberg

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