Louisiana bankruptcy also known as the Mississippi turmoil (Louisiana flop)

A joint-stock company (Compagnie de la Louisiane ou d’Occident, or Mississippi Company for short) founded by the Scottish money theorist John Law (1671-1729), who had been working in France since 1712 as controller general of finances, with the aim of developing the Mississippi lands then under French rule. – By raising completely exaggerated hopes of profits, the price of the shares rose continuously. The number of shares was silently increased. In fact, however, none of the many plans came to fruition. The company eventually went bankrupt. Thousands of small investors lost their deposits, which were often financed on credit. Confidence in banks and joint-stock companies was diminished in France for a long time. – See crash, Darien bankruptcy, financial crisis, loads, speculation, tulip crash, exuberance, unreasonable.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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