The EI Podcast Andrew Ross Sorkin on lessons from the Wall Street Crash
Nov 5, 2025
Andrew Ross Sorkin, bestselling author of "1929" and financial journalist, dives into the lessons from the 1929 Wall Street crash. He discusses the intriguing character of Charles 'Sunshine' Mitchell, showcasing how his overbuying at National City led to chaos. Sorkin highlights the opulent lifestyles of bankers and how modern regulations have shifted the financial landscape, likening today's conditions more to 1999 than 1929. He also emphasizes the importance of humility, cash reserves, and asking the right questions in finance.
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Sunshine Charlie’s Secret Bailout
- Charlie Mitchell secretly bought back shares and took a personal loan from J.P. Morgan to stop a bank run.
- His actions aimed to hide traders' overbuying and protect a merger that would make his bank the world's largest.
Leverage Was The Real Match
- Leverage, not the market drop itself, was the accelerant that turned the crash into catastrophe.
- Many investors lost everything because they owed multiples of their equity due to extreme borrowing.
A Crash Prolonged By Poor Information
- The crash unfolded over many days, amplified by slow information flows.
- Investors flocked to the exchange because delayed price boards and poor communication left them desperate for real-time information.
