Law 6 Geo. I. c. 18, « to retain several extravagant and unjustified practices mentioned here », was so named. It provided for sanctions for the creation of companies with little or no capital, with the intention of obtaining money from the public through the sale of shares through attractive advertising. Such companies were commonly referred to as « bubbles » at the time. This legislation was triggered by the collapse of the « South Seas Project » which, as Blackstone puts it, « had fought half the nation. » It was largely repealed by Law 6 Geo. IV. at 91 A recurring type of financial hysteria in which something (e.g., Tulip bulbs, Florida country, shares of the South Sea Company – to name just three well-known examples) is subject to a savage price escalation, which eventually results in a total price collapse that wipes out those who have the misfortune of having bought or kept it at the end of the game. Although pathological, bubbles testify to the fact that no matter how valuable something is, its price is a function of someone else`s willingness to pay. Therefore, you can rationally buy an exotic tulip bulb for the equivalent of $100,000 if your own judgment is correct that someone will claim it the next day for $110,000.
Some bubbles are the result of fraud, such as the deliberate and deliberate dissemination of false information about the value of things purchased, but some seem as mysteriously spontaneous as the disease of medieval dance or explosions of mystical visions in a monastic school. Efh chain of letters; Ponzi. An extravagant or insignificant project for large-scale operations in business or commerce, usually based on a fictitious or exaggerated prospectus to catch negligent investors. Societies based on such a basis or for such purposes are called « bubble societies ». The term is mainly used in England. The definition of bubble in U.S. law, as defined by lexicographer Arthur Leff in his legal dictionary, is: Powered by Black`s Law Dictionary, Free 2nd ed., and The Law Dictionary.
