Law, als een tweede Don Quichot, op Sanches Graauwtje..

This engraving is from the important account of one the most infamous financial meltdowns in history, known as the Mississippi Bubble incident. This engraved view is titled "Law, als een tweede Don Quichot, op Sanches Graauwtje zit ten spot." There are three columns of verses in Dutch below the scene.

John Law, a Scottish financier, established the Banque Generale (central bank) in France. He was then granted control of Louisiana and founded the Compagnie de la Louisiane d'Occident, in 1717. Law developed an elaborate plan to exploit the fabulous resources of the region, which quickly gained popularity and people rushed to invest, not just in France, but throughout Europe. This resulted in the development of several other overseas companies, such as the English South Sea Company and a number of smaller companies in the Dutch Republic. The share prices rose dramatically in a frenzy of speculation. In 1720 the bubble burst, speculators cashed in, caused a run on the shares, and the company went bankrupt. As a consequence of the failure, confidence in other similar companies failed, and thousands of individual investors across Europe were ruined.

Read more about "Het Groote Tafereel der Dwaasheid", or "The Great Mirror of Folly" or view several of the seventy-four plates from this book.