Renowned journalist and author of bestseller ‘Too Big to Fail’ Andrew Ross Sorkin said in a latest interview that that Wall Street is once again echoing the excessive speculation and debt-driven frenzy that preceded the Great Depression in 1929.
This time, however, he cautions that the driving force isn’t margin trading but the hype surrounding artificial intelligence (AI), while the safeguards meant to protect investors are steadily being eroded.
“We will have a crash, I just can’t tell you when, and I can’t tell you how deep. But I can assure you, unfortunately, I wish I wasn’t saying this, we will have a crash,” Sorkin said in an interview.
What does Sorkin’s new book talk about?
In his latest book, ‘1929: Inside the Greatest Crash in Wall Street History’, Sorkin has warned that the Roaring Twenties offer important lessons for today’s market observers.
According to Sorkin, the issue isn’t just that the stock market has hit record highs—it’s that this surge comes amid a weakening economy and growing geopolitical instability.
He suggests that the market is now fueled by intense speculation, mounting debt, and the removal of traditional safeguards that typically protect investors.
Social Media criticises Sorkin’s remarks
The stock market remarks made by the renowned journalist and author faced a severe backlash on social media.
A user on X said, “One of the stupidest clips I have ever seen.
Why are we asking a journalist to make quantitative judgement? He is a journalist that reports on financial matters, he is not a financial person himself.
He has absolutely no authority to speak on this at all…and you see that in how stupid his answer is. Par for the course for 60 minutes.”
Another user commented on the post saying, “I’m telling you it’s going to rain. I can’t tell you how much or when but I’m telling you it’s coming. Also buy my book I’m plugging about rain coming.”
What was US stock market depression in 1929?
The Roaring Twenties reached its peak on the New York Stock Exchange, where share prices soared to record levels. The Dow Jones Industrial Average surged sixfold, climbing from 63 points in August 1921 to 381 points by September 1929. At the height of the boom, economist Irving Fisher famously declared that stock prices had reached “a permanently high plateau.”
However, the remarkable upswing ended in a devastating collapse. On Black Monday, October 28, 1929, the Dow plunged nearly 13%, followed by another 12% drop on Black Tuesday. By mid-November, almost half of the index’s value had been wiped out. The decline persisted until the summer of 1932, when the Dow hit 41.22—its lowest level of the 20th century, representing an 89% fall from its peak. It would take until November 1954 for the Dow to recover to its pre-crash level.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
