The most amazing bubble promoters of all time!

Macroeconomic conditions and paradigm-shifting inventions set the stage for bubbles. But ultimately, bubbles are made by humans. Every bubble is inspired by energetic promoters who provide the capital, the energy, and the intellectual justifications that persuade their fellow Americans to go a little bit crazy. Here are my nominees for the Bubble Hall of Fame:

The Telegraph

Henry O'Reilly (1806-1886)
Noteworthy bubble-blowing role: In late 1840s, the former postmaster of Rochester, N.Y., having failed with several telegraph lines, raised $660,000 from individual investors to build a line from Louisville to New Orleans. In 1850, the wire was washed away by flood and the system was leased to a new operator for $13,500.

Catchphrase: "The general prosperity of the lines constructed under the arrangements of the subscribers ... render it needless to dwell even for a moment on the value of this great line."

Ignominious end/debunking: Wound up as a customs-house clerk. Historian's judgment: "He was a great man for starting something, and a poor man for finishing anything."

The Railroad

Jay Gould (1836-1892)
Noteworthy bubble-blowing role: compulsive speculator, relentless buyer and seller of railroads, pioneered Enron-style financial gimmicks. Controlled the Erie and the Union Pacific, among others. Kicked off destructive cycle of network construction and assembling in the 1880s that led to widespread disaster.

Catchphrase: none

Ignominious end/debunking: Died rich, but despite fine recent biography by Edward Renehan, consigned to history as an arch robber baron by historian Matthew Josephson.

The Roaring '20s