Prof G Markets Are We Reliving 1929? Parallels to Today’s Market Mania — ft. Andrew Ross Sorkin
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Oct 31, 2025 
Andrew Ross Sorkin, Editor-at-large of DealBook and co-anchor of CNBC's Squawk Box, dives into the striking similarities between the 1929 market crash and today's financial landscape. He explains how leverage and speculation played roles then and now, cautioning against the opaque risks in AI-driven markets. Sorkin discusses the dynamics of financial innovation and modern manipulation, while also examining the upcoming NYC mayoral race. His insights weave history with present-day lessons on market behavior and governance.
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Mass Margin Lending Fueled The Crash
- The 1929 crash was fueled by mass margin lending that made stock trading a national pastime and wildly inflated prices.
- Widespread leverage forced people to sell homes and erased generational wealth, setting dominoes toward the Great Depression.
Crash Was A Slow, Multi-Year Collapse
- The 1929 market decline was not a single-day event but a multi-year collapse with repeated shocks and policy mistakes.
- By 1932 stocks lost about 90% and unemployment hit 25%, showing how slow declines can become catastrophic.
Modern Safeguards But Hidden Leverage
- Today's financial system has safeguards like the SEC and capital requirements, so a repeat of 1929 is less likely.
- Yet hidden modern leverage (private credit, circular deals) raises uncertainty about where risks hide.
