He Could Calculate the Heavens, but Not Human Madness

Newton and the South Sea Bubble: Even Ge

The short version: the man who computed universal gravitation lost about £20,000 in a stock bubble. In 1720, Isaac Newton was swept up in England's South Sea Bubble: "I can calculate the motion of heavenly bodies, but not the madness of people."

1720: The Bubble That Swallowed London

In 1720, the South Sea Company won the privilege of converting British government debt into shares. Price rocketed from £128 in January to over £1,000 by August. In September the bubble burst — by December shares crashed near £100.

How much did Newton lose?

He sold at a profit early, but FOMO pulled him back in at the top. Lost around £20,000.

Why did even a genius fall?

Not intelligence — psychology. Buying back in after profit, herd psychology, domain illusion.

Watch the full video: https://youtu.be/0YPl2ZiDfd8


 

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