RAILWAY MANIA

During the British Railway Mania, which occurred between 1843 and the autumn of 1845, the prices of railway shares doubled, and thousands of new railway lines were projected. However, share prices then fell dramatically, and the railway industry endured a sustained downturn... The central cause of the Mania was the myopic expectations of investors, who hoped that recent improvements in the profitability of the railway industry would continue long-term. However an economic downturn and overexpansion by the railways led to a substantial deterioration in financial performance.

Primary location: United Kingdom