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The South Sea Bubble was one of the earliest modern financial crises. It involved the South Sea Company, which was established in 1711 by the lord treasurer of England and was expected to be extremely profitable. Touting exclusive trading rights with Spanish South America, it sparked wild speculation that rocketed its share price to £1,000 in August 1720. The following month, it collapsed. Thousands were ruined—including many members of the government. What was the company’s true purpose? Discuss
Source: The Free Dictionary