Andrew Ross Sorkin Talks Newest Book, Comparison to Modern Times

Episode Overview

Title: Andrew Ross Sorkin Talks Newest Book, Comparison to Modern Times
Podcast: Bloomberg Talks
Date: January 15, 2026
Guest: Andrew Ross Sorkin (New York Times bestselling author of “Too Big to Fail,” co-anchor of CNBC’s Squawk Box, DealBook founder)

This episode features an in-depth conversation with Andrew Ross Sorkin about his latest book, “1929: Inside the Greatest Crash in Wall Street History and How It Shattered a Nation.” Sorkin discusses the causes and lasting impacts of the 1929 crash, draws parallels to today's financial landscape, and reflects on lessons learned—for markets, investors, and leaders. The conversation explores historical misconceptions, systemic risks, the evolution of financial technology, inequality, and the perennial roles of human behavior and humility in finance.

Key Discussion Points & Insights

Then and Now: Can 1929 Happen Again?

Protections against Another 1929?
- Sorkin explains systemic improvements: real-time technology, SEC regulation, insider trading restrictions, FDIC insurance, and capital requirements didn't exist in 1929 ([01:28]-[02:21]).
- "One of the reasons that 1929 even happened was literally the stock exchange was oftentimes off… people were just selling indiscriminately because they just thought the whole thing didn't even work." —Andrew Ross Sorkin [01:35]
The Myth of Inevitability:
- The crash didn’t unavoidably lead to the Great Depression—it was compounded by poor policy choices: Fed inaction, tariffs, the gold standard, and austerity ([02:19]-[03:28]).

Modern Market Risks: What’s Different, What’s Not

Government’s New Playbook:
- Post-crisis responses (e.g., 2008, COVID) rely on injecting liquidity—a tactic derived from Bernanke’s Great Depression research ([04:00]-[05:00]).
- This creates the “market put,” but Sorkin cautions about debt’s rising role:
  “Now we have $38 trillion… the question is, let's say we have a crash and the government says… we're going to write a check for $5 trillion… Whether you believe that there is some kind of invisible line that turns into a red line for the bond market… And then you get into some kind of austerity spiral, and then you're living at a 25% unemployment rate.” —Andrew Ross Sorkin [04:15]
Tech as Double-Edged Sword
- Information now flows instantly—good for transparency but disastrous when negative news spreads, as seen in the Silicon Valley Bank saga ([05:51]-[06:06]).

Current Fads, Risks & Debates

Irrational Exuberance, Then and Now
- The 1920s were fueled by margin debt; today sees leverage in crypto, prediction markets, and private credit ([06:06]-[07:14]).
- Sorkin highlights major transparency risks in private credit, noting even the Fed lacks full visibility ([06:48]).
Leverage: The Universal Red Flag
- "Leverage is the match that lights the fire every single time… If there isn’t the leverage piece, it’s very hard to have a true systemic problem.” —Andrew Ross Sorkin [20:04]

Social and Cultural Parallels: Inequality and Greed

“Is Wall Street Greedier Today?”
- Sorkin notes that FOMO (fear of missing out) is turbocharged by smartphones and TikTok, amplifying perceived and real inequality ([07:49]-[08:08]).
- More people today feel “unable to make it” and are therefore more willing to take big risks ([08:08]).
Wealth & Social Cohesion
- A key difference: In the past, CEOs lived among workers—social cohesion has lessened, exacerbating divides today ([09:08]-[10:12]).

Historical Perspectives & Personalities

Regulation: Politics and Policy
- The Federal Reserve’s independence was shaky in the 1920s, with officials wary of political consequences ([10:37]-[11:44]).
- Recent debates echo old tensions, with the Fed keen to demonstrate independence, sometimes to a fault ([13:09]-[13:32]).
Process of Writing the Book
- Sorkin spent eight years on exhaustive research—archival digging, access to never-before-seen Fed board minutes, depositions, and architectural plans to reconstruct scenes ([15:10]-[16:48]).
- Surprising revelations included primary sources indicating parts of key regulation (Glass-Steagall) were influenced by banking rivalries, not just purity of intent ([17:02]-[18:13]).
Evangeline Adams, Wall Street’s Astrologer
- A colorful character, Adams counseled leading bankers and ran a massive newsletter, showing how even top financiers have always sought unconventional guidance ([18:17]-[19:01]).
- “She would ask her what's going on with the stock market… They would go off and make their trades.” —Andrew Ross Sorkin [18:51]

Recurring Patterns: Crisis Indicators

Spotting the Next Crisis
- Leverage is always the culprit, from 1929’s margin calls to 2008’s subprime loans ([20:04])
- Anecdotes shared about “red flags”—from shoeshine boys giving stock tips in 1929 to real estate talk at yoga retreats pre-2008 ([21:03]-[21:21]).
- “All of these are red flags being thrown on the field… The question is, when do they turn red?” —Andrew Ross Sorkin [21:33]

Presidential Leadership and Policy Response

Herbert Hoover’s Reputation
- Sorkin expresses empathy but points out Hoover’s poor decisions, especially tariffs enacted for political gain, and his failure as a communicator ([22:14]-[23:26]).
The Power—and Limitations—of Leadership:
- Hoover’s attempts at optimism and assurances echo tactics from leaders today ([23:26]).

Humility as the Antidote

Sorkin’s Main Takeaway:
- He emphasizes that the ultimate lesson is about human fallibility—FOMO, envy, overconfidence—and the need for humility ([23:56]).
- “The antidote to irrational exuberance is not regulation by itself nor skepticism, but humility. The humility to know that no system is foolproof, no market, fully rational, no generation exempt.” —Andrew Ross Sorkin [24:34], [24:48]
- While some investors (e.g., Warren Buffett) exemplify humility, it’s all too rare among business leaders and market participants ([24:53]).

Notable Quotes & Moments with Timestamps

On the roots of 1929’s crash:
“One of the reasons you always see those famous pictures of people down [at] the New York Stock Exchange, 1929…the reason they're all in the street is these are people who've come from all over New York…to try to find out what's happened to their money.”
—Andrew Ross Sorkin [01:42]
On policy and crisis:
“The crash in 1929 wasn't preordained…That was really the first domino of a series of dominoes and then a series of frankly terrible policy choices.”
—Andrew Ross Sorkin [02:46]
On today’s systemic risk:
“The one thing that’s different is if you genuinely believe every financial crisis…is a function of debt…Now we have $38 trillion.”
—Andrew Ross Sorkin [04:07]
On the new “instant panic”:
“Someone goes on Twitter and says, I'm pulling my account now…Everybody does it over the weekend on their phone.”
—Andrew Ross Sorkin [05:51]
On greed and human behavior:
“They didn't use the phrase back then, but this idea of FOMO…makes inequality…the perception of it and just the visibility of it.”
—Andrew Ross Sorkin [07:49]
On writing the book:
“All of those quotes are real. And then, oftentimes I would go and try to find either the architecture plans or a photograph of the room so I could really try to put you in it.”
—Andrew Ross Sorkin [15:10]
On regulatory history:
“Parts of [Glass-Steagall] were actually written by another banker trying, frankly, to screw over JP Morgan… It's no different.”
—Andrew Ross Sorkin [17:02]
On crisis warning signs:
“Leverage is the match that lights the fire every single time.”
—Andrew Ross Sorkin [20:04]
On humility as the antidote to exuberance:
“The antidote to irrational exuberance is not regulation by itself nor skepticism, but humility. The humility to know that no system is foolproof, no market, fully rational, no generation exempt.”
—Andrew Ross Sorkin [24:34], [24:48]

Important Timestamps

[01:28] — Debate: Can another 1929 happen?
[02:19]-[03:28] — Key systemic reforms and how the Great Depression unfolded post-crash
[04:00]-[05:51] — Modern crisis playbook, government debt, tech’s downsides
[06:06]-[07:14] — Leverage and systemic risk parallels: crypto, private credit
[10:12]-[10:37] — Inequality and ultra-wealthy: then and now
[13:09]-[13:32] — Fed independence and modern perceptions
[15:10]-[16:48] — Sorkin’s immersive research and unseen sources
[17:02] — Motive behind Glass-Steagall; money and power’s influence
[18:17]-[19:01] — The extraordinary Evangeline Adams, Wall Street astrologer
[20:04] — The universal danger of leverage
[23:56]-[24:48] — Sorkin’s main takeaway: Humility is essential

Tone and Language

The conversation is lively, inquisitive, and rigorous but approachable—mirroring Sorkin’s investigative style and the hosts’ drive to connect historical and contemporary finance for a broad audience. Throughout, humor, humility, and a respect for complexity come through, especially in Sorkin’s insights and anecdotes.

Final Takeaway

Sorkin contends that while the odds of another 1929 have been reduced by regulation and technology, the same human tendencies—overconfidence, FOMO, and the ever-present risk of excessive leverage—mean crises are never out of the question. Modern finance’s biggest safeguard, he argues, is not just policy or skepticism, but collective humility: the acknowledgment that no system, generation, or market is immune from failure.

Episode Overview

Key Discussion Points & Insights

Then and Now: Can 1929 Happen Again?

Protections against Another 1929?
- Sorkin explains systemic improvements: real-time technology, SEC regulation, insider trading restrictions, FDIC insurance, and capital requirements didn't exist in 1929 ([01:28]-[02:21]).
- "One of the reasons that 1929 even happened was literally the stock exchange was oftentimes off… people were just selling indiscriminately because they just thought the whole thing didn't even work." —Andrew Ross Sorkin [01:35]
The Myth of Inevitability:
- The crash didn’t unavoidably lead to the Great Depression—it was compounded by poor policy choices: Fed inaction, tariffs, the gold standard, and austerity ([02:19]-[03:28]).

Modern Market Risks: What’s Different, What’s Not

Government’s New Playbook:
- Post-crisis responses (e.g., 2008, COVID) rely on injecting liquidity—a tactic derived from Bernanke’s Great Depression research ([04:00]-[05:00]).
- This creates the “market put,” but Sorkin cautions about debt’s rising role:
  “Now we have $38 trillion… the question is, let's say we have a crash and the government says… we're going to write a check for $5 trillion… Whether you believe that there is some kind of invisible line that turns into a red line for the bond market… And then you get into some kind of austerity spiral, and then you're living at a 25% unemployment rate.” —Andrew Ross Sorkin [04:15]
Tech as Double-Edged Sword
- Information now flows instantly—good for transparency but disastrous when negative news spreads, as seen in the Silicon Valley Bank saga ([05:51]-[06:06]).

Current Fads, Risks & Debates

Irrational Exuberance, Then and Now
- The 1920s were fueled by margin debt; today sees leverage in crypto, prediction markets, and private credit ([06:06]-[07:14]).
- Sorkin highlights major transparency risks in private credit, noting even the Fed lacks full visibility ([06:48]).
Leverage: The Universal Red Flag
- "Leverage is the match that lights the fire every single time… If there isn’t the leverage piece, it’s very hard to have a true systemic problem.” —Andrew Ross Sorkin [20:04]

Social and Cultural Parallels: Inequality and Greed

“Is Wall Street Greedier Today?”
- Sorkin notes that FOMO (fear of missing out) is turbocharged by smartphones and TikTok, amplifying perceived and real inequality ([07:49]-[08:08]).
- More people today feel “unable to make it” and are therefore more willing to take big risks ([08:08]).
Wealth & Social Cohesion
- A key difference: In the past, CEOs lived among workers—social cohesion has lessened, exacerbating divides today ([09:08]-[10:12]).

Historical Perspectives & Personalities

Regulation: Politics and Policy
- The Federal Reserve’s independence was shaky in the 1920s, with officials wary of political consequences ([10:37]-[11:44]).
- Recent debates echo old tensions, with the Fed keen to demonstrate independence, sometimes to a fault ([13:09]-[13:32]).
Process of Writing the Book
- Sorkin spent eight years on exhaustive research—archival digging, access to never-before-seen Fed board minutes, depositions, and architectural plans to reconstruct scenes ([15:10]-[16:48]).
- Surprising revelations included primary sources indicating parts of key regulation (Glass-Steagall) were influenced by banking rivalries, not just purity of intent ([17:02]-[18:13]).
Evangeline Adams, Wall Street’s Astrologer
- A colorful character, Adams counseled leading bankers and ran a massive newsletter, showing how even top financiers have always sought unconventional guidance ([18:17]-[19:01]).
- “She would ask her what's going on with the stock market… They would go off and make their trades.” —Andrew Ross Sorkin [18:51]

Recurring Patterns: Crisis Indicators

Spotting the Next Crisis
- Leverage is always the culprit, from 1929’s margin calls to 2008’s subprime loans ([20:04])
- Anecdotes shared about “red flags”—from shoeshine boys giving stock tips in 1929 to real estate talk at yoga retreats pre-2008 ([21:03]-[21:21]).
- “All of these are red flags being thrown on the field… The question is, when do they turn red?” —Andrew Ross Sorkin [21:33]

Presidential Leadership and Policy Response

Herbert Hoover’s Reputation
- Sorkin expresses empathy but points out Hoover’s poor decisions, especially tariffs enacted for political gain, and his failure as a communicator ([22:14]-[23:26]).
The Power—and Limitations—of Leadership:
- Hoover’s attempts at optimism and assurances echo tactics from leaders today ([23:26]).

Humility as the Antidote

Sorkin’s Main Takeaway:
- He emphasizes that the ultimate lesson is about human fallibility—FOMO, envy, overconfidence—and the need for humility ([23:56]).
- “The antidote to irrational exuberance is not regulation by itself nor skepticism, but humility. The humility to know that no system is foolproof, no market, fully rational, no generation exempt.” —Andrew Ross Sorkin [24:34], [24:48]
- While some investors (e.g., Warren Buffett) exemplify humility, it’s all too rare among business leaders and market participants ([24:53]).

Notable Quotes & Moments with Timestamps

On the roots of 1929’s crash:
“One of the reasons you always see those famous pictures of people down [at] the New York Stock Exchange, 1929…the reason they're all in the street is these are people who've come from all over New York…to try to find out what's happened to their money.”
—Andrew Ross Sorkin [01:42]
On policy and crisis:
“The crash in 1929 wasn't preordained…That was really the first domino of a series of dominoes and then a series of frankly terrible policy choices.”
—Andrew Ross Sorkin [02:46]
On today’s systemic risk:
“The one thing that’s different is if you genuinely believe every financial crisis…is a function of debt…Now we have $38 trillion.”
—Andrew Ross Sorkin [04:07]
On the new “instant panic”:
“Someone goes on Twitter and says, I'm pulling my account now…Everybody does it over the weekend on their phone.”
—Andrew Ross Sorkin [05:51]
On greed and human behavior:
“They didn't use the phrase back then, but this idea of FOMO…makes inequality…the perception of it and just the visibility of it.”
—Andrew Ross Sorkin [07:49]
On writing the book:
“All of those quotes are real. And then, oftentimes I would go and try to find either the architecture plans or a photograph of the room so I could really try to put you in it.”
—Andrew Ross Sorkin [15:10]
On regulatory history:
“Parts of [Glass-Steagall] were actually written by another banker trying, frankly, to screw over JP Morgan… It's no different.”
—Andrew Ross Sorkin [17:02]
On crisis warning signs:
“Leverage is the match that lights the fire every single time.”
—Andrew Ross Sorkin [20:04]
On humility as the antidote to exuberance:
“The antidote to irrational exuberance is not regulation by itself nor skepticism, but humility. The humility to know that no system is foolproof, no market, fully rational, no generation exempt.”
—Andrew Ross Sorkin [24:34], [24:48]

Important Timestamps

[01:28] — Debate: Can another 1929 happen?
[02:19]-[03:28] — Key systemic reforms and how the Great Depression unfolded post-crash
[04:00]-[05:51] — Modern crisis playbook, government debt, tech’s downsides
[06:06]-[07:14] — Leverage and systemic risk parallels: crypto, private credit
[10:12]-[10:37] — Inequality and ultra-wealthy: then and now
[13:09]-[13:32] — Fed independence and modern perceptions
[15:10]-[16:48] — Sorkin’s immersive research and unseen sources
[17:02] — Motive behind Glass-Steagall; money and power’s influence
[18:17]-[19:01] — The extraordinary Evangeline Adams, Wall Street astrologer
[20:04] — The universal danger of leverage
[23:56]-[24:48] — Sorkin’s main takeaway: Humility is essential

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Summary

Episode Overview

Key Discussion Points & Insights

Then and Now: Can 1929 Happen Again?

Modern Market Risks: What’s Different, What’s Not

Current Fads, Risks & Debates

Social and Cultural Parallels: Inequality and Greed

Historical Perspectives & Personalities

Recurring Patterns: Crisis Indicators

Presidential Leadership and Policy Response

Humility as the Antidote

Notable Quotes & Moments with Timestamps

Important Timestamps

Tone and Language

Final Takeaway

Summary

Episode Overview

Key Discussion Points & Insights

Then and Now: Can 1929 Happen Again?

Modern Market Risks: What’s Different, What’s Not

Current Fads, Risks & Debates

Social and Cultural Parallels: Inequality and Greed

Historical Perspectives & Personalities

Recurring Patterns: Crisis Indicators

Presidential Leadership and Policy Response

Humility as the Antidote

Notable Quotes & Moments with Timestamps

Important Timestamps

Tone and Language

Final Takeaway