Political Gabfest Gabfest Reads | Inside the Greatest Crash in Wall Street History
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Nov 15, 2025 
Andrew Ross Sorkin, a renowned journalist and author of financial crises analysis, dives into the 1929 stock market crash. He reveals how optimism and leverage led to the boom and subsequent bust, highlighting key figures like Charlie Mitchell and Jesse Livermore. Sorkin draws parallels to today's financial landscape, discussing the dangers of AI funding and crypto trends. He also explores the human toll of the crash, the political missteps that exacerbated the crisis, and offers a cautious optimism for America's innovative future.
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Democratization Of Credit And Speculation
- The 1920s democratized credit and stock ownership, transforming mortgages and margin into mainstream tools.
- Brokers and brokerages proliferated, fueling widespread speculative behavior across classes.
Trading Tips From Every Corner
- Ordinary people took tips from shoeshiners and elevator operators as if they were reliable stock advice.
- There were no prospectuses or SEC disclosures, so people relied on hearsay for investment decisions.
Fed Hesitation Enabled Risky Lending
- The Fed worried about political fallout and relied on informal measures like letters rather than decisive monetary action.
- That hesitancy allowed continued easy credit and conflict-of-interest lending.
