Lesley Stahl Sits Down with Sorkin to Discuss His New Book “1929”
In a compelling 60 Minutes interview, Andrew Ross Sorkin, renowned journalist and author, compared today’s Wall Street to the pre-crash market of 1929, raising alarms about speculative bubbles fueled by artificial intelligence and technology-driven exuberance. Speaking with Lesley Stahl, Sorkin delved into the themes of his upcoming book, “1929: Inside the Greatest Crash in Wall Street History – and How It Shattered a Nation,” set for release on October 14.
Sorkin, the founder of DealBook and co-host of CNBC’s Squawk Box, spent nearly a decade researching the events leading up to the stock market crash of 1929. He now sees troubling parallels between that era and today’s overheated markets.
A Modern-Day “Roaring ’20s”
During his discussion with Lesley Stahl, Andrew Sorkin described the current financial climate as a “new Roaring ’20s.” Stocks have surged to record highs in 2025, driven largely by the AI investment boom. Yet, Sorkin cautions that this euphoria could mask serious structural vulnerabilities.
“I’m anxious that we are at prices that may not feel sustainable,” said Sorkin. “We’re either living through a remarkable boom driven by AI and technology—or everything’s overpriced. Unfortunately, we will have a crash. I just can’t tell you when or how deep.”
The stock market crash of 1929 began after a period of unchecked speculation. Sorkin noted that many ordinary investors were encouraged to buy on margin—borrowing up to 90% of the stock price—a practice that magnified the collapse once panic selling began.
The Birth of Credit and the Seeds of Speculation
In his book, Sorkin 1929, the journalist traces how modern consumer credit took root in the early 20th century. Companies like General Motors began lending money so Americans could buy cars, a move that normalized debt. Banks soon followed, extending loans for stock purchases.
“This was wrapped in the flag of democratizing access,” Ross Sorkin explained. “In good times, it looked like free money. But in bad times, people found themselves trapped.”
Today, Sorkin warns, similar forces are at play. Billions are pouring into AI startups and crypto assets, creating a new wave of speculative frenzy.
Deregulation and the Erosion of Guardrails
The 60 Minutes segment also explored the weakening of financial safeguards put in place after 1929. Sorkin highlighted that while laws and agencies like the Securities and Exchange Commission (SEC) were designed to prevent such disasters, some of those protections are now fading.
“The Consumer Protection Bureau practically doesn’t exist anymore,” he said. “There’s speculation and rising debt, all happening as the guardrails come off.”
Sorkin warned that expanding access to private equity and high-risk investments in the name of “democratizing finance” could expose ordinary Americans to greater financial peril.
Larry Fink, AI, and the Future of Investing
The interview also featured Larry Fink, CEO of BlackRock, who suggested that retirement funds could soon include private investments such as AI and data centers. Fink sees this as an opportunity to diversify portfolios, though he acknowledged the risks.
Sorkin cautioned that while innovation and new financial instruments can offer rewards, they can also mirror the speculative bubbles of 1929. He even recounted a personal anecdote in which a meme cryptocurrency named “Sorkin Coin” skyrocketed to $170 million in daily trading volume—only to collapse shortly after.
“It was surreal,” Sorkin said. “That kind of volatility shows how fragile some of these markets really are.”
The Lesson from 1929
In “Sorkin 1929”, the author argues that understanding the psychology and mechanisms behind the stock market crash is vital to avoiding a repeat. His warning is clear: innovation must be balanced with oversight, and optimism must not blind investors to risk.
As Sorkin told Lesley Stahl, “The markets teach you humility. Every time we think we’ve outsmarted history, history finds a way to humble us.”
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