GZERO World with Ian Bremmer

Episode: Andrew Ross Sorkin says the next financial crisis is coming

Release Date: November 15, 2025
Host: Ian Bremmer
Guest: Andrew Ross Sorkin (New York Times journalist, CNBC anchor, and author of "1929: The Crash that Shattered a Nation")

Overview

In this episode, Ian Bremmer speaks with Andrew Ross Sorkin about financial crises past and present, with a focus on the echoes between the 1929 stock market crash and today’s economic environment. As Sorkin unveils his new book chronicling the events and aftermath of the 1929 crash, the conversation explores whether the world is on the brink of another major financial crisis. The discussion ranges from debt-fueled economic booms, policy missteps, the hidden risks of today’s markets (especially in AI and private finance), and the troubling silence of corporate leaders.

Key Discussion Points & Insights

Lessons from the Crash of 1929

• Sorkin’s new book draws on nearly a decade of intensive research to put readers "in the room" with major financial and political players of the late 1920s.
  • "The hardest part was putting all of the puzzle pieces together." (Andrew Ross Sorkin, 03:28)
• The 1920s were transformative: the rise of the automobile, radio, and—crucially—consumer and investment credit.
  • "For the first time in America, people, ordinary Americans, were taking on credit...and buying cars." (Sorkin, 04:57)
• The stock market boom was largely powered by cheap and easy credit, a radical cultural shift away from prior generations' distrust of debt.

Missed Off-Ramps and Policy Failures

• Policymakers recognized something was amiss, but were paralyzed by fears of public backlash if they acted too aggressively.
  • "They were all worried out of their minds that things are getting completely out of control, but they're so scared about the political ramifications..." (Sorkin, 07:08)
• Post-crash, a series of compounding policy errors (e.g., raising taxes, protective tariffs, refusal to offer public aid) exacerbated the crisis, leading to massive unemployment and economic hardship.
• Hoover’s administration approached the crisis with a mix of optimism and austerity, sometimes believing “jawboning” would fix the downturn.

Human Cost and Societal Shifts

• The crash caused a generational economic scar, with many Americans blaming themselves rather than bankers.
  • "I think a lot of people thought...it was on them. I think there was a sort of almost a personal responsibility piece of it..." (Sorkin, 11:14)
• Cultural transformation was mirrored in language: "depression" (a Hooverism) replaced "panic" as the euphemism for economic disaster.

Present Parallels and Looming Risks

• Sorkin is less worried about a repeat of 1929 but sees a “1999” (dotcom) style crash as "almost impossible not to have" in today's environment.
  • "I would argue it's almost impossible for us not to have another 1999. How about that?" (Sorkin, 02:49)
• Euphoric investment in AI, with unclear business models and massive hidden leverage, resembles the unchecked optimism of the Roaring Twenties and the dotcom bubble.
  • "There is no way to truly pencil out the math right now. It’s almost religious in terms of the scale of investment..." (Sorkin, 17:13)

The Problem of Hidden Leverage

• A key new danger: today’s leverage is mostly hidden in less regulated spaces (private credit, private equity, venture, crypto), with little transparency or oversight.
  • "I don't think we even have a good handle on where all the leverage is...it's all on these private equity, private credit vehicles and there's no disclosure." (Sorkin, 15:19)
• Unclear interconnections between shadow finance and traditional banks make the system’s fragility difficult to assess.

Transparency and Data Crisis

• After 1929, reforms increased transparency, but today, new “shadows” have formed, with both government and private actors obscuring key economic data.
  • "We're now in a moment where there's a lot of things happening in the shadows." (Sorkin, 19:25)
  • Sorkin calls for “demonstrable independent data coming out of the government—that's a clear and present danger if we do not have that.” (20:39)

International Complications

• The current era of competing global powers (the “GZERO” world) means crises are complicated by fractured geopolitics and rising nationalism.
• Trade policy, specifically tariffs and the quest for “resilience” and “national security” in supply chains, forces the US to reconsider interdependence.
• Sorkin suggests America should aim for greater connection, not less, warning that radical decoupling could have severe long-term consequences:
  • "That interdependence, I believe, ultimately is important. And I think long term, I worry more about what happens when there's no interdependence..." (Sorkin, 24:46)

The Silence of Corporate Leaders

• Sorkin highlights a growing unwillingness among CEOs to publicly challenge government policies, driven by fear of political retribution.
  • "Most CEOs are really unwilling to say anything...The biggest concern I have is...are there going to be leaders who are going to be willing to stand up and explain what needs to happen?" (Sorkin, 26:03)
• There are rare exceptions, such as Ken Griffin, who has openly criticized policies he disagrees with.

Timestamps for Notable Segments

• 02:16 – Sorkin on why he wrote about 1929 and the hope to prevent future crashes
• 03:28 – Research challenges and reconstructing the crash
• 04:57 – The transformative, debt-fueled Roaring Twenties
• 06:42 – Missed opportunities to prevent or mitigate the crash
• 11:14 – The cultural response: blame, responsibility, and the rise of "depression"
• 14:37 – Comparing the government’s wider fiscal latitude in 1929 to today
• 15:19 – Dangers of hidden leverage in non-bank financial institutions
• 17:13 – The AI investment euphoria compared to the dotcom bubble
• 19:25 – The vital need for transparency and independent economic data
• 22:59 – Debate over globalization, national security, and economic resilience
• 24:36 – Sorkin argues for more interdependence, not less
• 26:03 – The troubling silence of today's CEOs and possible consequences in a crisis

Notable Quotes

• On hope vs. optimism:
  "I like to think that actually we're not going to have another 1929, but I think it's very possible actually...it's almost impossible for us not to have another 1999."
  — Andrew Ross Sorkin, 02:49

• On the current leverage blind spot:
  "I don't think we even have a good handle on where all the leverage is...it's all on these private equity, private credit vehicles and there's no disclosure."
  — Andrew Ross Sorkin, 15:19

• On AI investment euphoria:
  "There is no way to truly pencil out the math right now. It’s almost religious in terms of the scale of investment and there is a level of indiscriminate spending."
  — Andrew Ross Sorkin, 17:13

• On the importance of transparency:
  "I think we need demonstrable independent data coming out of the government—that's a clear and present danger if we do not have that."
  — Andrew Ross Sorkin, 20:39

• On lessons from the past:
  "History rhymes. It repeats. That's where we are."
  — Andrew Ross Sorkin, 26:08

• On CEO silence:
  "Most CEOs are really unwilling to say anything...they are not willing to raise their hand and say, this is a problem."
  — Andrew Ross Sorkin, 26:03

Memorable Moments

• Sorkin describes his years-long archival deep dive, including undisclosed Fed board minutes and “unpublished memoirs” (03:28), blending historical sleuthing with present-day urgency.
• Discussion of “Sunshine Charlie” Mitchell, who evangelized stock market credit for the masses, and the fine line between innovation and predation (09:43).
• The psychological and linguistic impact: Hoover’s preference for "depression" over "panic" as a form of PR blunder (13:30).
• The tension between economic resilience and security versus efficiency and global connection is made concrete with the example of cars versus refrigerators and supply chain vulnerabilities (23:36–24:36).
• Sorkin’s concern that leaders’ reluctance to speak out publicly could worsen the next crisis, as “emotional armor” is in short supply—even at the top (27:35).

Conclusion

This episode delivers a sweeping analysis of financial crises, the dangerous lack of transparency and accountability in modern markets, and the risky silence in the executive suite. Drawing chilling parallels between the 1929 crash and the current AI-driven, leverage-laden boom, Sorkin and Bremmer warn that without urgent attention to old lessons—transparency, independent data, and open leadership—a future reckoning may already be brewing.

Recommended for listeners who want:

• Historical context for today’s financial risks
• Insight into shadow banking, AI bubbles, and global economic fragmentation
• Unvarnished opinions on what policymakers and business leaders must change to avert catastrophe

Skip directly to key segments:

• Lessons from 1929: 02:16 – 11:54
• Modern echoes & hidden risks: 14:37 – 17:47
• Need for transparency: 19:25 – 21:50
• Globalization vs. resilience: 21:50 – 24:45
• CEO silence & leadership worries: 26:03 – 29:35