1720 South Sea Bubble

The South Sea Bubble has been referred to as the first financial crisis in history, the first Ponzi scheme in history, a fever for speculation, and a terrible illustration of what may happen when people fall to contagious group believes. The fact that it was a catastrophic financial collapse and that some of the best intellectuals of the era, including Isaac Newton himself, lost as a victim is beyond dispute. According to various estimates, Newton might well have lost as much as £40 million in today’s value in the scheme.