The South Sea Bubble Of 1720 The World's First Ponzi Scheme

The South Sea Bubble Of 1720 The World's First Ponzi Scheme
The South Sea Bubble has been called: the world’s first financial crash, the world’s first Ponzi scheme, speculation mania and a disastrous example of what can happen when people fall prey to ‘group think’. That it was a catastrophic financial crash is in no doubt and that some of the greatest thinkers at the time succumbed to it, including Isaac Newton himself, is also irrefutable. Estimates vary but Newton reportedly lost as much as £40 million of today’s money in the scheme.
Although this bubble happened 300 years ago, generations of British population have been paying down this debt. Even today, a portion of the tax collected from the general population is used to pay off this debt. The complete history of the South Sea company is well beyond the scope of this article. However, we will try to cover the important financial aspects.
..................
My youtube chanel: https://www.youtube.com/channel/UCj_uWYaGgY87C9eMM5CeqdA

Video product from: bit.ly/3LqUDGj