In Our Time The South Sea Bubble
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Dec 20, 2012 
Melvyn Bragg and guests delve into The South Sea Bubble, a financial disaster of early 18th-century England. The podcast explores the rise and fall of the South Sea Company, the impact on investors, societal reactions, and parallels to modern market bubbles like the dot com era. They discuss the company's involvement in the slave trade, political maneuvering, and lessons learned from this historic stock market boom and bust.
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South Sea Company's Political Origins
- The South Sea Company aimed to counter Whig financial influence by managing government debt and trading with South America.
- Robert Harley, a Tory, saw the company as a way to challenge Whig dominance during Queen Anne's reign.
London's Early Financial Markets
- London's financial markets, established in the 1690s, experienced a boom and bust due to war-related companies.
- John Blunt, key figure in the South Sea Bubble, was also active during this earlier period.
John Law's Influence
- John Law, a Scottish gambler, became France's finance chief, introducing a national currency and consolidating trading companies.
- His system's rapid expansion and inflation led to a bust, with speculators moving their money to London.