The South Sea Bubble - The First Financial Crash

[@PBoyle]

Try Rocket Money for free: RocketMoney.com/Patrick #rocketmoney #personalfinance

[@gringadoor5385]

No

[@ivantsanov3650]

@@PBoyle 😝

[@georgedoolittle7574]

*"Sir Isaac Newton makes a fortune...then loses it all and then some"* first market *"MANIA"* we know of because of this actually so yes is this simple a study if you want to make this surprisingly approachable as a Story quite compelling as well "guy literally invented Physics" got involved with money 😊😊

[@typxxilps]

Have you read the news: EV charging with a Zeekr has achieved 10 to 80% under 10 minutes with still a 250 kW charge rate at 80% Fully charge would take 8 minutes more. The ICE manufacturers will be loosing market share big times sooner or later and even 40 ton trucks here are now electrified, Mercedes and the scandinavian manufacturers have started to roll out these trucks from the plants. USA might falling even further behind - at least what they have achieved so far : nothing , except Tesla But even Tesla is now here in the EU falling behind unless they start further price cuts cause they have started laying of people in giga berlin Why ? Well, the european manufacturers are forced to achieve bigger EV shares or they pay fines - big times, so ICE prices have been increased and the EV sales offensive has started with additional discounts, every legacy automaker has pulled the trigger. if the dealerships do not achieve more EV sales their ice car deliveries will not be cut, but their comissions big time. Remember: the first Porsche was what ? An electric one built in 1896

[@ewwwwmarmite]

Rocket Money only works in the US. Which is a bummer for non US viewers like me who went and tried to sign up

[@davidgoodman2813]

"Smelling of lucifer's furnace and with a stench that would stifle virtue and good manners" is exactly what i'm looking for in a coffee. (Thanks for the video!)

[@peterrabson3383]

Love it!

[@piuthemagicman]

That was well worded indeed 😌

[@FossilGlasses]

For the amount of information, knowledge, research done for this video and the unique communication and presentation style of the presenter, having only 61K views after 13 hours, shows that more digital time is spent on viral nonsense then on informative videos

[@jensanruby]

Thats alot of views to have on a video. He is actually doing better in view count and subscribers than modt of the youtubers i follow who sit around 10 000 to 100 000 subs. I think the fact you think that isnt many views is more indicative of what side of the internet you are on as opposed to a value judgement about the so called 'average man'

[@mihai2045]

You are right, but there is also so much going on today that nobody cares about interesting things that happened 300 years ago...

[@Somerled_Pox]

Are you gonna keep riding that high horse while adjacent comments have been true since forever and ever?

[@WDC_OSA]

I'd bet that some of the topics mentioned (slavery, xenophobia, and circumcision status) put this video at a disadvantage with the recommendation algorithm.

[@babayaga6376]

Well...yeah, rap channels are not what they used to be...

[@ControversialOpinion]

I never thought I could enjoy a channel dedicated to all things finance, considering I basically don't have any. You are a true gem, Mr Boyle. Thank you for your content!

[@bubbasbigblast8563]

@15:20 So, as it turned out, the Spanish also just didn't like buying slaves from English, preferring to instead buy slaves from other Catholics, for whatever reason. The funny bit of this is that, while the slave trade was unprofitable, using the slave trade as an excuse to smuggle manufactured goods into under-served Spanish colonys WAS profitable, creating perhaps the most bizarre economic dynamic in all of history: using slave ships to smuggle cooking wares.

[@StarPlatinum3000]

WTF??? Are there any books (or even Wikipedia links) I can read about this, that you can point me to?

[@Mrrossj01]

​@@StarPlatinum3000 " Extradinary Populer Delusions and the Madness of Crowds"

[@Mrrossj01]

By Charles McKay

[@Mrrossj01]

Extraordinary Popular Delusions and the Madness of Crowds Book by Charles Mackay

[@JoelJames2]

@@Mrrossj01Didn’t that guy make up a lot of stuff though? At least according to the Extra History episode on Tulips

[@gargoyle7863]

Best economic history lesson on KZbin. 🌟

[@aaronwoods961]

I really enjoy your videos I appreciate them being dumbed down enough that I can enjoy and understand them but not so much that I feel like I am watching a video for 9-year-olds

[@playlisttarmac]

I do not know why but your comment reminded me that we had to in Australia watch a news show at 9 yrs old in school called Behind the News. I have now just seen it is on KZbin. Thanks for the reminder/memory and possible future watching.

[@JohnSmith-rr8hp]

Thank you Patrick, This video probably underperforms your expectation, but I just want to say, I have personally enjoyed it very much and watched it 3x. Thank you for putting this together

[@sparkyfromel]

Much thanks for the light thrown on one of the most notorious financial episode On then politicians being bought..... " but things are different now ! " made me choke on my coffee

[@johnappleseed6422]

Excellent oration, thanks so much Patrick, your deadpan wit gets me through the day!

[@oneone9884]

It never occurred to me just how much coffee shops have served as hubs of learning, commerce and community. And here I thought our modern behavior of spending hours in a Starbucks doing homework, or managing my Bitcoin holdings and sucking up the WiFi was new and modern behavior. Leave it to Patrick to show just how recursive the world really is.

[@Malcolmcollins-js1pw]

Luckily, the idea of business owners getting involved in government to massively inflate the share price would never happen, especially in say somewhere like America .

[@sertorius3319]

Washington hadn’t even left the presidency when it happened the first time.

[@anonymousonlineuser6543]

That would be a no brainer investment would not it?

[@mikebaker2436]

37:44 Imagine the shock of being thrown under the bus a full century before they were invented.

[@BasedFalcon]

Such a greatly produced historical and economic video that digital media is lacking. Really pleasing to listen to while working.

[@cocoyeabroom]

❤ the sneak Taboo reference 😂

[@Mark_Kiwi]

still the best rap channel on youtube

[@jasona5806]

This…

[@Vergoso_42]

Context and source?

[@jameslazer819]

Duh duh duh duh, they not like us, they not like us 🕺🏾

[@ellismarsalis6064]

@ I don’t know the precise origins of the meme but it is related to the crypto-scammer couple one of whom was this ditzy woman who posted silly monotone rap videos eluding to the crimes they had committed and Patricks treatment of that story with his oh so witty dry and wry english humor.

[@Illiteratechimp]

​@@Vergoso_42 If you have to ask, you'll never know

[@DanCooper404]

I have yet to ever see Mr. Boyle blink.

[@nothingtoseehere5760]

I love these historical videos. Thank you!!!

[@thomasneedham3342]

Phenomenal effort on this one, enjoyed every minute

[@j3i2i2yl7]

I don't think Adam Smith mentioned the South Sea Company in The Wealth of Nations. He did discuss the East India Company at some length. I wonder if he considered the South Sea Company financing system too convoluted for rational analysis.

[@helmutthat8331]

He mentions it in passing, but doesn't go into detail. He kind of assumes the reader is already familiar with the story, since it was so famous.

[@Janika-xj2bv]

I didn't understand one bit but I loved Mr. Boyle's role as financial historian.

[@haggis884]

Great video - very interesting topic. Loved your matching video on John Law too.

[@andypayne2743]

Loved this video Patrick. Really enjoy it when you take a deep dive into history.

[@collinvickers2345]

Love this video, Patrick. One of your most interesting pieces.

[@danielhale1]

I love these videos, and this is an excellent topic. Thank you, Patrick!

[@WondaSayre]

The Wexxo presale is one of the most exciting opportunities I’ve seen in a while.

[@Tn_jed001]

Rumor has it that Isaac Newton reinvested a couple days before the top and lost it all.

[@dave_lawrence]

Outstanding, thank you so much

[@garrenosborne9623]

Glad to se your getting back to your Rap Roots with a deep dive on one of the early Boom n Buster rhyms of 1700s bangers the Bubble'Wrap..... Soon to be seen back in the present with Deepseeking looking to pop the AI fermentation sampling bubble.

[@FantasticGuitarChannel]

Funny you should publish this today PB! Only 2 nights ago I watched your John Law vid and as this was playing your recommendation "Millionaire" (Janet Gleeson) was posted through my letterbox. If you have any recommended reading on the south sea bubble please share...I read "A very English deceit" (Malcolm Balen) a few years ago and found it quite entertaining! cheers, Leo

[@TakaD20]

Good that we today don't fall for such tomfoolery anymore and have our reliable magical internet money.

[@guydreamr]

And collateralized debt obligations.

[@yeetfarmer]

Thanks!

[@PBoyle]

Thank you!

[@AguanteCiclon1700]

Is there movies about this?

[@blacksnow7106]

"I can calculate the motions of heavenly bodies, but not the madness of people"-Newton, trading South Sea stocks

[@dewiz9596]

As I recall, he really messed up with Tulips. . . Twice

[@blu0065]

"I like them thicc af" - Newton on the Law of Universal Gravitation

[@nicolasallen8072]

​@blu0065 Famously Newton had his epiphany about gravity when he was sitting under a tree and was struck in the head by a falling pair of Applebottom jeans.

[@blu0065]

@nicolasallen8072 I always heard the apple story was fake. This makes so much more sense.

[@restitvtororbis5330]

​@@blu0065It was actually an Apple IPhone. He just googled what gravity was and stole the idea. He probably would have done more but he couldn't find a charger so it just became a paperweight after 1 day.

[@DailyDamage]

Quite excellent video. I’m a former futures broker who worked on the old Liffe Exchange, in the Royal Exchange. I had to smile and the going’s on. Sounds just like the derivative trading I was involved in. Quite fascinating to see one’s roots so clearly. I must commend you 😊

[@puffypuff]

Guy is my new hero.

[@xelaxander]

Love the video! It’s not news but relevant nonetheless.

[@alexhubble]

A history lesson from Patrick is a lesson worth a listen. Jesus, did I just write that? Oh well, the sentiment stands.

[@richyglitched]

1:00 Bro drops the hardest fact of 2025

[@ramsaymayka9978]

Purely coincidental timing of this release

[@alejandrooceguera4656]

Hmm I wonder if there are any modern parallels that could be taken from this.... nope can't think of one

[@sonos168]

gees...i wonder if TSLA is in a bubble...short squeeze play

[@BradSchmor]

I'm not sure that mathematics is better understood by the general public today.

[@bobsmith5714]

Britain's finances weren't so secret of a weapon during the Napoleanic wars. They even got the nickname, "The Golden Cavalry of St George."

[@kevinlee7263]

Can anyone tell me what film the clips used in this video came from? The one featuring Jonathan Price.

[@thevoxdeus]

Bronze Age Collapse: Am I a joke to you?

[@aidanclare6602]

Let’s all buy the dip on the South Sea Company 😎

[@Velereonics]

From the thumbnail, I 100% thought that this was going to be about Michael Buble being arrested for insider trading or tax fraud.

[@heathdionne7717]

just wait for the next crypto exchange to take off

[@Muljinn]

We should be so fortunate…

[@Meatball2022]

That’s on schedule for March….

[@llucos100]

Well, if you know this channel well enough you would know that it covers exclusively rap music news… not whatever Michael Buble does.

[@KonFry]

I thought it was going to be hip hop news. We're all disappointed

[@GeorgeDoughty-m8e]

Politicians meddling in financial markets? Thankfully that's not allowed today.

[@thomas6502]

Enjoyed this. Thank you. Aside: As the once professors "The Pixies" intoned during their tenure at UMASS, "It's educational." Fwiw, your rap game is bubbilicious; maybe it's ready to be inflated with some glitch trap and a BPM boost! Onward and upward good sir.

[@sorenfrick447]

Really enjoy your vidoes but surely this must be the second financial crash after the Tulip mania that came crashing down in 1637

[@jannetteberends8730]

I thought tulip mania was the first crash? They even had options trade on tulip.

[@lindsayparker2965]

Oliver Cromwell addressing parliament?? LOL

[@honderdzeventien]

Phew that was a long haul. Did I see in the footage a movie about that very thing, or was that taken from any costume drama and made to fit the episode @Patrick Boyle and also, do you think Tesla/musk is going 'south sea company'?

[@kevikiru]

8:00 This channel is actually going back to it's roots as a rap channel.

[@whoisjohngalt-hg5us]

Mr Boyle you are a master of subtle sarcasm and irony....almost qualifying as an Aussie 😊 and a most edifying channel.

[@BanwarilalKumawat-ij6tp]

Thanks for the educative video…. As new investor, it's important to remember that investing and trading require more than just technical analysis skills. Discipline and emotional maturity play a significant role in achieving success. It's wise to keep in mind the adage of "time in the market vs. timing the market," as this mentality can help you weather market volatility. With insights of Kerrie Farrell and my commitment to learning and growth, I've been increasing my earnings in just a few months. Keep up the good work..

[@BanwarilalKumawat-ij6tp]

Kerrie Farrell program is widely available online..

[@LeightonCorrigan]

As a beginner, it's essential for you to have a mentor to keep you accountable.

[@RomanLansang]

I appreciate the professionalism and dedication of the team behind Kerrie’s trade signal service..

[@jhonatanascimento364]

Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience.

[@kristinangelova9780]

The fact that i got to learn and earn from her program is everything to me think about it, it's a win win for both ways..

[@FranssensM]

I really enjoyed this history and finance lesson. Could you do some more, maybe the story of NWA and Easy E

[@ZelihaOzgur-w4t]

Wexxo’s AI-driven approach is what sets it apart in the crypto gaming space.

[@PMARC14]

I am here to take immediate issue with your title on this otherwise fantastic video. The South Sea Bubble is better thought of as the first modern finance crash, because people have been destroying markets for as long as they have been trading things you didn't physically own.

[@ChristosGoulios]

Interesting video though the idea that Britain fought France on a leveled footing before the 100 days is I think a wrong notion. It does give a good explanation on the stability of Britain while at war within the Napoleonic conflict but i think it is wrong to not take note of the great Austrian, Russian and Prussian effort and capital which was put into the war which at times was greater than that of Britain's in certain areas.

[@DaweSMF]

Iam glad so much changed and our wise governments made out of pure, almost angelic like human beings do not engage in any activity even remotely close to those in this video. Someone should make rap song about it.

[@BramSchouten]

The first financial bubble was almost 100 years earlier. In 1637 the stockmarket for Tulip bulbs (shares, futures and options!) crashed and bankrupting people.

[@DomWood]

you should consider why it is that the man with specific knowledge of that event didn't make this video about it. it's really damn lazy and rude to behave like this.

[@krpajda]

there is a video on this channel about that bubble, which, if i recall correctly, contends that the bubble actually never happened

[@Roflcopter4b]

There were zero bankruptcies in Amsterdam during that period.

[@jsimsgt96]

I know it’s a sponsor but I struggle to believe Patrick doesn’t know where his money is to the penny

[@x--.]

Do you see how our gentle host dresses? Sharp as a tack. He has enough money to make it entirely believable that he losses track of the pennies and even a few pounds.

[@operator8014]

His mind on his money and his money on his mind.

[@AP-ib7rf]

what's your 'favourite' active bubble, Patrick?

[@paratracker]

This is a good time to discuss the ASML/Nvidia/Mag7/... bubble popped by DeepSeek recently. I wonder what might trigger a return to sanity re: Tesla too.

[@Nasrudith]

Allowing the import of cheap Chinese EVs and allowing their market share to be eaten up?

[@LAW-IT-f8v]

@@Nasrudith We should allow BYD. Oligarchs love the free market until consumers start trying to buy from their rivals.

[@theairstig9164]

Governments are notorious for picking winners and losers. Example: gas, power, water, solar and wind utilities getting preferential market access thereby exercising pricing control. Why would a government not legislate away free market operation in exchange for undocumented bribes, international political influence or to placate a particular electorate (Hello all you F-35 contractors)?

[@MadalynNeedham]

Wexxo is the perfect AI gaming project.

[@Bailey_iQ]

Thanks for a great video! Do drugs like coffee, nicotine, alcohol, & amphetamines have a noticeable behavioral effect on financial actors & innovations? Often times we discuss financial bubbles like a cycle of addiction: a big higher and a larger low. It also so happens stock markers start to rise as trade picked up between West Europe and the Rest- with coffee and tabacoo being huge commodity markets. Coffee and nicotine increase focus and the analytical perspective (from my pov- though I rarely use the latter). Perhaps I’m putting too much emphasize on small differences in the state or psyche causing marginally important behavioral changes.

[@CowMaster9001]

I actually watched a video that mentioned this topic yesterday. It was about how the British Prime Minister during the lead up to the American revolution bungled it partially because the British government needed to recover funds lost to this bubble. Please get out of head, Mr Boyle.

[@PeterGimson-i5m]

Apparently Isaac Newton lost £20,000 on the South Sea Company, just proving that stupendous knowledge in mathematics an physics is no guarantee that you can handle investing.

[@Thr3-Words]

0:37 I‘m going to go back to listen to this joke mmMMmanNny times!!

[@MSportsEngineering]

Thanks Rap News Daddy

[@Isaac-gh5ku]

So, the 1929 Great Depression was not the first financial crash?

[@hjs9td]

If Richard Sharpe was alive, this would never have happened.

[@MurderMostFowl]

24:20 … don’t worry that particular token is going to take a nose dive in about 70 days when it unlocks and the rug pull happens.

[@GulsumNezih]

The team behind Wexxo knows exactly what the gaming industry needs.

[@FilizFeyza]

Wexxo: The future of play-to-earn.

[@Mrrossj01]

"Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay. Some in clandestine companies combine; Erect new stocks to trade beyond the line; With air and empty names beguile the town, And raise new credits first, then cry ’em down; Divide the empty nothing into shares, And set the crowd together by the ears.-Defoe.

[@samsonsoturian6013]

There was more than just slaves coming out of Africa. There was gold, cocoa, and sugar too. The slave traders didn't discriminate, because those guys would buy stolen goods too (this was the "golden age of piracy")

[@PeterHitchmanYT]

5:25, thank goodness we don’t have such a political class now

[@incurableromantic4006]

"A great undertaking, but no one to know what it is" It doesn't sound any madder than most of the crypto-coins out there TBH.

[@russellwild8329]

why dont we rename bitcoin to the south sea coin, no dividend/interest return but it goes up and up

[@MurderMostFowl]

Why does it feel like the details of this bubble and all the insider trading and crazy behaviors are all matching up with parallels to the current infatuation with crypto?

[@sertorius3319]

A big difference here is that this bit of fraud actually helped consolidate some of the British government’s national debt. Trumpcoin can’t even have the basic courtesy of purchases being at least partially payable in government debt.

[@ffdv7458]

shhhh, crypto is amazing it will change the world! oh wait....

[@theairstig9164]

Many bubbles all the time. On top of this the human mind is driven to find patterns even when they aren’t there. Economists are calling this one the bubble of everything - stocks,crypto,real estate,gold,luxury watches . You decide what fair value is to you

[@AnjanetteHarding]

Wexxo’s vision for AI-powered gaming is truly groundbreaking.

[@AlanTheBeast100]

Ironic how Exchange Alley was getting market signals by virtue of its physical position. Not unlike today's high frequency traders by "virtue" of their position on networks near the exchange.

[@AlexWatson-t1f]

Nice video but I'm not buying any crap from Rocket Money

[@z50king29]

I'm sorry but it's been 10 minutes and no rap news, yet. Not sure if I'm going to make it through this one

[@ethanboyd7843]

Paying "influencers" to pump a speculative but trendy investment is a bit on the nose I'd say.

[@Mrrossj01]

100 BP in 1750 is 28,000 BP today. These were not working class people. The rich gambled and lost. 😂

[@x--.]

If I understand this properly, the government successfully laundered their expensive bond debt to a private company which could take the fall if anything went amiss. When it did, they could sit back tut-tutting the scandal with mostly clean hands. Though it begs the question, if the directors hadn't bribed and bubbled their way to higher and higher stock prices, could it have worked without a crash? Fascinating tale regardless, reminding us all that the best form of government is one that socializes the losses and privatizes the gains.

[@sertorius3319]

@@x--. The Bank of England is an example of this being done successfully (and without fraudulently pumping stock prices), and the East India Company also issued new stocks in a similar manner in that era. Also, Alexander Hamilton did the same thing when he chartered the first Bank of the United States. There was also a bubble involved in that last case, but that had more to do with western land speculation, industrial startups (like Hamilton’s pet project in Paterson, NJ), and attempts by speculators to supplant NY state’s Bank of New York than any problem with the Bank itself (which helped mitigate the damage) and Hamilton was innocent of any wrongdoing.

[@exnihilo415]

24:20 Zing!

[@DirkusTurkess]

Queen Anne died? I didn't even know she was sick.

[@randomchannel-px6ho]

The more things change - the more they stay the same.

[@YoungGirlz8463]

forealz

[@effingsix3825]

🤔 I had difficulty understanding just what the South Sea Bubble was about. It wasn’t necessarily about vapourware land title, but about global trade in human slavery that expanded out of the hands of the Spanish and Portuguese due to the war of Spanish succession. The South Sea Bubble was, essentially, a human trafficking bubble.

[@j3i2i2yl7]

As I understand it, in 1720 the British slave trade was not very profitable, but by 1730 they had worked out a lot of the inefficiencies, and Britian dominated the slave trade.

[@---capybara---]

I wonder when the Microstrategy bubble will burst... Bitcoin can't keep going up forever...

[@kratos1590]

With regards to South Sea Company slave trade your conclusions about it being unprofitable with higher than regular mortality rate is most likely incorrect. According to research from David Eltis and Helen Paul the company was relatively successful with lower than average mortality rate (suggesting that operationally they were competent). The trade continued even after the bubble burst suggesting that the trade was likely profitable. So the company was a huge overvalued bubble but the company itself might not have been unprofitable.

[@stephenhumble7627]

Interesting that investors in 1720 did not know mathematics. I think today some may but just fail to use of financial analysis anyway.

[@bjorntorlarsson]

Swedish King Gustavus the 3rd, reigning 1771-92 (murdered) illegalized coffee. He has been said (this being disputed by so called serious historians) to have convicted a murderer to lifetime jail instead of hanging, on the condition that he drank coffee every day. Assuming that would in effect be a death penalty anyway.

[@notmyrealname3167]

So that math nerd was the first quant guy

[@PrinceCbass]

An exchange being next to a post office is like modern day high frequency traders buying buildings and operating closer to the where the fiberoptic cables come ashore to take advantage of milliseconds before other traders get the information.