Prof G Markets: Are We Reliving 1929? Parallels to Today’s Market Mania — ft. Andrew Ross Sorkin

Podcast: Prof G Markets — Vox Media Podcast Network
Date: October 31, 2025
Guests: Scott Galloway (Host), Ed Zitron (Host), Andrew Ross Sorkin (Guest)

Episode Overview

This episode dives deep into Andrew Ross Sorkin’s new book, 1929, which explores the causes, characters, and consequences of the infamous 1929 stock market crash. Hosts Scott Galloway and Ed Zitron explore historical parallels between 1929 and current market trends—especially the AI boom and the increasing presence of leverage and speculation. The conversation ranges from stories of Wall Street’s past, lessons for the present, and candid reflections on financial journalism, politics, and personal ambition.

Key Discussion Points & Insights

1. The Crash of 1929: What Really Happened

[08:36–13:41]

• Sorkin sets the scene: “The 1920s… was probably one of the most transformational generations of our time from a technological perspective. Automobiles, telecommunications, radio. The other magic ingredient was credit.” (Andrew Ross Sorkin)
• The innovation wasn’t just tech—it was access: mass credit allowed ordinary people to purchase not only goods but also stocks, kicking off speculative mania.
• From 1928 to September 1929, the market soared by 90% before the crash.
• The crash unfolded slowly. “It wasn’t as much of a crash as it was a slow bleed… By the time we were in, I think, ‘32, the market had lost 90% of its value.” (Scott Galloway, 13:12)
• Deep leverage and policy errors (e.g., Smoot-Hawley Tariffs, lack of Fed action) amplified the crisis, culminating in 25% unemployment and 9,000 bank failures.

2. Why Tell the Story of 1929 Now?

[10:09–10:57]

• Sorkin was inspired by repeated questions comparing 1929 and 2008 and wanted to tell the story “in the room,” through its people, not just economic events.
• The book focuses on vivid personalities and dynamics rather than just data.

3. Key Historical Figures & Modern Analogs

[10:57–13:12]

• Charles Mitchell (“Sunshine Charlie”) democratized access to stocks, “like the Jamie Dimon—and in some ways Michael Milken—of his time.”
• Carter Glass, “the Elizabeth Warren of his time,” championed Glass-Steagall and opposed rampant speculation.
• John Raskob, likened to Elon Musk, popularized mass credit for car purchases and was a visionary behind the Empire State Building. “He was the Elon Musk of his era… He used to say, ‘everyone ought to be rich.’” (Andrew Ross Sorkin, 20:05)

4. Parallels to the Present: Are We Reliving 1929?

[15:34–19:23]

• Leverage remains central: Sorkin suspects today’s risks resemble 1999 (dot-com bubble) more than 1929, but points out harder-to-trace leverage flows in today’s private credit markets and AI boom.
• The euphoria surrounding artificial intelligence, fueled by debt and circular deals among tech giants, echoes the unchecked optimism preceding both 1929 and 1999.
• Sorkin: “Back then RCA was the Nvidia of its day. Now it’s Nvidia.” (15:57)
• Warning signs are here: Sorkin notes “round trip transactions” and “indiscriminate” spending, especially in AI.

5. Learning (or Failing to Learn) from History

[22:08–23:01]

• Sorkin cites Einstein’s epigraph: “The ordinary human being does not live long enough to draw any substantial benefit from his own experience. And no one, it seems, can benefit by the experiences of others… Each must learn its lesson anew.”
• “We have to learn our lessons ourselves,” he observes about markets’ recurrent cycles. (Ed Zitron, 22:08)

6. Speculation: Double-Edged Sword

[23:01–24:31]

• Sorkin challenges the idea that speculation is always bad: “Speculation in some way built America.”
• The challenge today: maintain healthy speculation to fuel innovation, but prevent it from running amok.

7. What Should Policymakers Do?

[24:31–26:22]

• Preventative measures: raising interest rates, recognizing imbalances (e.g., AI-driven GDP growth).
• Crisis playbook: Historically, flooding markets with liquidity (bailouts) is politically and fiscally harder now due to debt.
• Sorkin points to today’s massive U.S. debt as a complicating factor compared to 1929’s balanced budget. “Bondholders in U.S. treasuries are going to raise their hand and say… you have to pay us more for that risk.” (Andrew Ross Sorkin, 26:12)

8. Present-Day Market Rooms: Recreating the Drama

[29:52–31:48]

• Sorkin imagines a modern “in the room” moment: Sam Altman arranging deals with Lisa Su (AMD) to secure AI chips through complex financial engineering.
• These “circular deals” echo historic pooling and manipulation practices: “I would want to see that conversation… trying to understand how much anxiety all of these individuals really have or don’t have.” (Andrew Ross Sorkin, 31:48)

9. Corruption, Influence, and the State of American Capitalism

[31:48–34:14]

• Galloway posits our era is defined by “an orgy of corruption and flat out grift.” (Scott Galloway, 31:48)
• Sorkin recounts being targeted by cryptocurrency scammers manipulating “Sorkin coin”—modern echoes of 1920s Wall Street pools.

10. Politics, Populism & the New York Mayoral Race

[34:17–41:49]

• Discussion shifts to the Cuomo vs. Mamdani NYC mayoral contest, using it as a microcosm for the American debate over capitalism, socialism, and governance.
• Sorkin: “The idea of a city that's built on capitalism being run by somebody who demonstrably… wants to fundamentally change it is a fascinating development.” (Andrew Ross Sorkin, 34:55)
• Wall Street is less worried about actual socialist reforms, more concerned with policing, safety, and managerial competence.
• The growing generational disillusionment with capitalism: “Support for socialism [is] at an all time high in America.” (Ed Zitron, 40:30)
• The business community acknowledges concern but is not yet taking radical political change seriously. “I think they're concerned. I don't think they're taking it seriously, though.” (Sorkin, 41:49)

11. Writing & Researching ‘1929’ – Sorkin’s Process

[43:27–52:08]

• Sorkin on his “black market” research during COVID lockdowns: paid students to access and photograph archival materials when libraries were closed.
• Relentless research process: “Trying to find all the material and also to think through these different characters to figure out what were their motivations… what was the chip on the shoulder?” (44:35)
• On ambition and filling ‘a hole’: “I have a hole that I’m trying to fill.” (Sorkin, 46:51)
• Storytelling advice: Ground complex financial systems in personal stories and motives; it makes cycles relatable and understandable. “I'm fascinated by people… I ultimately believe people make decisions, good and bad, that ultimately impact and create those economic cycles and systems.” (Sorkin, 49:03)

12. Understanding Today’s Economic Titans—What Drives Sam Altman?

[52:08–53:55]

• Sorkin analyzes Altman: “I think that he believes in his heart that there’s an inevitability to this technology… [so] he is convinced of… these other issues oddly, do sort of fall to the wayside.”

13. Advice on Media, Life & Work

[53:55–56:49]

• On launching a media company: Blend podcast, video, and product, noting younger audiences’ expectations and tolerance for blurred interests.
• On balancing family and career: Sorkin lauds “doing everything you possibly can do” before kids, then finding purpose in showing children hard work and passion.
• Marriage advice: “Find somebody who you could talk to forever… We never get sick of each other.” (Andrew Ross Sorkin, 56:49)

Notable Quotes & Memorable Moments

• On the slow-motion nature of 1929:
  "It was kind of a slow moving train wreck." — Scott Galloway (13:12)

• On why speculation need not always be vilified:
  “Speculation in some way built America… so much of the generational change technologically and otherwise came from speculators.” — Andrew Ross Sorkin (23:01)

• On current market leverage:
  "...after 2008, so much of the loan market moved to private credit. We don't really know all the disclosures about that..." — Andrew Ross Sorkin (15:57)

• On character-driven history:
  “I’m fascinated by people because I ultimately believe people make decisions, good and bad, that ultimately impact and create those economic cycles and systems.” — Andrew Ross Sorkin (49:03)

• On what drives ambition:
  “I have a hole that I’m trying to fill.” — Andrew Ross Sorkin (46:51)

• On today’s ‘grift’:
  “It strikes me that… what will mark this age economically is this orgy of corruption and flat out grift. Your thoughts, Andrew?” — Scott Galloway (31:48)

Timestamps for Important Segments

• [08:36] – The 1929 Market Crash: Build-up and aftermath explained
• [10:57] – Key historical characters and present-day analogs
• [15:57] – Parallels & differences between 1929 and today’s markets
• [17:45] – The AI boom as today’s speculative mania
• [22:08] – The Einstein quote: lessons never learned
• [23:01] – Speculation as an American engine
• [24:31] – Lessons for policy: prevention and response
• [29:52] – Sorkin’s “in the room” vision for today’s market deals
• [31:48] – Corruption: then and now
• [34:55] – Politics: capitalism vs socialism in NYC
• [43:27] – Sorkin’s research process and personal drive
• [49:03] – Advice on storytelling
• [52:08] – Psychological profile: What’s driving Sam Altman?
• [53:55] – Building a modern media company
• [55:05] – Life and relationship advice

Episode Tone & Style

• The banter is sharp, irreverent, and peppered with personal anecdotes, comedic jabs, and moments of earnest introspection.
• Sorkin shines both as historian and storyteller, bridging economic concepts with vivid character sketches and practical lessons for the present.
• The hosts combine skepticism of market euphoria with hope that, over time, optimism pays.

Conclusion

This episode offers a rich exploration of 1929’s lessons for today’s investors, policymakers, and citizens. Through wit, candor, and historical detail, Sorkin, Galloway, and Zitron draw connections between eras, dissect the risks of boomtimes, and reflect on the nature of speculation, ambition, and leadership—in both markets and life.