In XVIIIth century Great Britain had rather large debts, thus some people decided to consolidate it as well as improve its administration. The South Sea Company was born. As its name implies the company was expected to trade with South America and use the profit to repay the debt as well as interest. But the problem was that South America was rules by Spain and Great Britain was at war with it. Still due to ingenious manipulations South Sea Company stock price grew to unbelievable heights. Despite the fact that it never made any profits from trading.
We invite you to see videos by Extra Credits, which tell the story with more details, but in attractive and approachable manner. You can find the playlist on YouTube by following this URL: https://www.youtube.com/watch?v=k1kndKWJKB8&list=PLhyKYa0YJ_5Aq7g4bil7bnGi0A8gTsawu&index=17. Below you should the embed of the first video.