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JohnLaw, a professional gambler acquired the Mississippi Company in France in 1717. Confidence in the company grew and grew, and it effectively gained the right to create money (credit) due to this confidence. Eventually, the bubble burst and the stock price plunged, leaving many in economic ruin.

For more details, see: (random collection, unrated)

• Overview from an (standard?) economic perspective - http://www.few.eur.nl/few/people/smant/m-economics/johnlaw.htm
• http://www.mapforum.com/05/law.htm
• A History Of Alabama (contempory report) - http://homepages.rootsweb.com/~cmamcrk4/pkt10.html
• Famous Historical Bubbles - http://www.pbs.org/wgbh/pages/frontline/shows/dotcon/historical/bubbles.html
• Extraordinary Popular Delusions And The Madness Of Crowds By Charles MacKay (1841) - http://www.litrix.com/madraven/madne001.htm

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