
RiskReversal Pod 1929: Stock Market Mania to Meltdown with Andrew Ross Sorkin
Jan 16, 2026
Andrew Ross Sorkin, a New York Times columnist and bestselling author, delves into his book about the 1929 stock market crash. He draws parallels between the roaring '20s and today's market trends, highlighting meme stocks and crypto manias. Sorkin discusses the role of debt and investor behavior during market booms, warning against complacency in recognizing financial risks. He also evaluates historical policies for dealing with speculation and the influence of political dynamics on Wall Street, showcasing a remarkable blend of history and contemporary finance.
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1920s Parallels With Modern Markets
- The 1920s and today show clear pattern recognition but also crucial differences in regulation and institutions.
- Andrew Ross Sorkin warns comparisons to 1929 must account for FDIC, SEC, and capital requirements that didn't exist then.
Debt Is The Real Wipeout Mechanism
- Debt and leverage are the recurring killers in market meltdowns.
- Sorkin emphasizes that extreme margin (10:1 in 1929) amplifies crashes far more than modest modern leverage.
Use Aggressive Liquidity To Stop Crises
- When crises hit, the effective playbook is to inject massive liquidity and fiscal support.
- Sorkin notes 2008 and the pandemic showed bailing out and spending can stop systemic collapse.









