Crash and Burn: The 15 Biggest Financial Disasters in History - History Collection

Throughout history, financial disasters have profoundly impacted economies, societies, and political landscapes. These events underscore the fragility of financial systems and the far-reaching consequences of economic mismanagement. Understanding these crises is crucial, as they offer valuable lessons on risk, regulation, and the importance of financial oversight. The following sections delve into 15 of the most significant financial failures that have shaped our world.

The South Sea Bubble was a financial crisis in 1720, centered on the South Sea Company, which had been granted exclusive rights to trade with Spanish America. The company proposed to manage Britain’s national debt by converting it into shares, leading to a speculative frenzy. Share prices soared from £128.5 to over £1,000, but the bubble burst, causing widespread financial ruin. An investigation revealed extensive fraud and corruption among company directors and government officials, resulting in significant legislative reforms to prevent future speculative bubbles. (britannica.com)