Against the Rules: The Big Short Companion Lessons of the Great Depression
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Nov 11, 2025 
Andrew Ross Sorkin, a financial journalist and author known for his insights on market crises, dives deep into the 1929 crash and its parallels with 2008's meltdown. He discusses the rampant speculation and margin credit that fueled the roaring twenties, revealing the personalities like Thomas Lamont and Jesse Livermore who played pivotal roles. Sorkin also contrasts the Federal Reserve's inaction in 1929 with its aggressive response in 2008. The conversation explores how narratives of blame and public trust in institutions have evolved over time.
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Credit-Fueled Frenzy Of The 1920s
- The 1920s stock boom was driven by new widespread access to credit and margin buying, turning trading into a national pastime.
- Leverage and market manipulation created a fragile system that amplified the eventual collapse.
Grandfather's Lasting Market Trauma
- Andrew Ross Sorkin recounts his grandfather witnessing a suicide during the 1929 crash and never buying stocks again.
- That trauma illustrates how the crash scarred a generation's psychology toward markets.
Banks As Crisis Conveners
- Thomas Lamont functioned as J.P. Morgan's de facto leader and advised government leaders during the crisis.
- Powerful banks played analogous central roles in both 1929 and 2008 responses.
