The Next Big Idea Andrew Ross Sorkin: What the Crash of 1929 Says About Today
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Nov 6, 2025 
In this engaging discussion, journalist Andrew Ross Sorkin shares insights from his book about the 1929 market crash. He explores how excessive leverage fueled financial disasters and the public's evolving relationship with money during the Roaring Twenties. Sorkin highlights the chaotic scenes of Black Thursday and reflects on what signals were missed leading up to the crash. He also draws parallels with today's economy, questioning if we're at risk of repeating history and discussing the role of new financial products like blockchain in shaping our future.
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Leverage Is The Real Ignition
- Too much leverage is the match that lights the fire in financial crises.
- Speculation can produce innovation but unchecked leverage amplifies collapse risk.
Stocks Became A Public Pastime
- Brokerages sprang up everywhere and brokers lent clients ten dollars for every dollar they put down.
- Ordinary Americans treated stock gambling as a national pastime during the 1920s.
Rapid Gains Fueled Reckless Optimism
- The market rose nearly 90% from early 1928 to September 1929, fueling extreme optimism.
- Leverage turned modest gains into life-changing paper wealth and intensified the eventual fall.
