The South Sea Bubble was a financial bubble that occurred in England in the early 18th century. The bubble was created by the South Sea Company, a British joint-stock company that was granted a monopoly to trade with Spanish America in 1711. The South Sea Company was established by an Act of Parliament in 1711, which granted it a monopoly on trade with Spain's colonies in South America. The company was created to consolidate and manage Britain's trade with the Spanish colonies, which was seen as a potentially lucrative market for British goods.

The company was granted various privileges, including the right to import a certain amount of goods into the colonies each year and the right to issue bonds that were backed by the future profits of the trade. The company's shares were sold to investors, many of whom saw the opportunity for significant profits.

However, the South Sea Company faced numerous challenges in trying to establish a profitable trade with the Spanish colonies. The Spanish government placed restrictions on British trade, and the company struggled to find profitable markets for its goods.

The company's shares became wildly popular and their price skyrocketed, fueled by speculation and the promise of high profits. The company's directors, including some prominent politicians, took advantage of the public's enthusiasm and made exaggerated claims about the company's potential earnings.

As the bubble continued to inflate, more and more people invested in the company, often taking out loans to do so. However, in 1720, the company's fortunes took a turn for the worse. The promised profits failed to materialize, and the company's directors were exposed as frauds who had manipulated the share price to their advantage.

The South Sea Company did use bribery to gain political support and further its interests. The company's directors, including its governor, Robert Harley, and its deputy governor, John Blunt, used their connections in the government to promote the company's interests and secure favorable legislation.

They bribed members of Parliament and other influential individuals with shares in the company, money, and other forms of inducement. This allowed them to influence legislation and gain the support of influential individuals, including members of the royal family.

The company also engaged in other forms of corrupt practices, such as insider trading and market manipulation, in order to maintain the high value of its shares and attract more investors.

The revelations of the company's corrupt practices contributed to the bursting of the South Sea Bubble in 1720, which led to widespread financial ruin and a loss of confidence in the financial system. The scandal also contributed to the passing of the Bubble Act in 1720, which prohibited the formation of joint-stock companies without a royal charter.

The bubble burst, causing a widespread financial panic and ruin for many investors who had bought shares at inflated prices. The government intervened to prevent a complete collapse of the financial system, but the damage had already been done, and the South Sea Bubble became a cautionary tale about the dangers of speculative bubbles and financial fraud.