Such a fragile Bubble when the price collapse

    According to evidences from historical bubbles, the south sea company's financing activities haven't complete yet until the south sea bubble popped. It was unobvious with south sea company shares failure from their accounts. But the bubble unexpected collapse at the first blow.

    
    I do believe that irrational investment, overconfidence, herding and mass delusion are the main effects in terms of this bubble. Urging the plenty of assets inflow to the south sea company that is the significant cause towards British government. Investors and shareholders who have optimistic expectations to the south sea company shares prompt the stock prices rose dramatically. The direct factor to destroy the south sea bubble is the psychological failings of investors. Irrational expectations and inexperienced investors contributed the south sea company bubble formation, and burst. what's more, the main reason to prick the south sea bubble is when British investors informed John Law's Mississippi bubble has burst. It indicates that the formation and collapse of bubble economy has higher contagious in the world.

Further information please click (here) from BBC 4 radio.