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A new book by Peter Garber says that the Tulipmania, the Mississippi, and South Sea bubbles were not bubbles but can be explained by "fundamentals. There are some terrific stories here-the Dutch tulip mania of the early seventeenth century, John Law's Mississippi scheme that set Paris agog a century later, and London's South Sea Bubble, a Ponzi scheme promoted by British entrepreneurs envious of Law. The South Sea Bubble produced so many corrupt profiteers and gullible victims that the Bubble Act of 1720 banned all joint-stock companies, except those established by separate Act of Parliament, for two centuries. |
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