The American mind is now in that state of fever which the world has so often seen in the history of other nations. We are under the bank bubble [of financial speculation], as England was under the South Sea bubble, France under the Mississippi bubble, and as every nation is liable to be, under whatever bubble, design, or delusion may puff up in moments when off their guard.
Thomas Jefferson to Charles Yancey, 1816, 965
Patrick Lee’s Explanation
No shimmering, soapy spheres here. These bubbles describe the unwarranted financial excitement nations get caught up in, usually to their hurt. The bubble affecting America in 1816 was a financial one. Within several years, that bubble would burst, leading to what was called the “Panic of 1819.”
Read about England’s South Sea bubble here, France’s Mississippi bubble here, and America’s Panic of 1819 here.
All three of these “bubbles” share a common thread of monopolistic control over certain portions of the economy.
Like those shimmering, soapy spheres, economic bubbles are entrancing to behold and lack any realistic foundation. Unlike soap bubbles, whose bursting causes no harm, financial bubbles usually take many innocent people down with them.
Being constantly on guard, whether as an individual or a nation, is a strong defense against bubbles.
What other warnings might Thomas Jefferson have for your audience?
Find out! Call Patrick Lee, 573-657-2739