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1929 vs 2025: Andrew Ross Sorkin on Crashes, Bubbles & Lessons Learned

In this episode, Chamath and Friedberg sit down with Andrew Ross Sorkin to delve into the historical parallels between the 1929 stock market crash and today’s financial landscape. The conversation goes beyond mere economic analysis, exploring the human behaviors, policy decisions, and technological shifts that shape market cycles and societal responses.
Sorkin discusses his motivation for writing a narrative-driven account of the 1929 crash, drawing connections to modern speculative markets like crypto and AI. The 1920s' culture of margin buying and financial optimism mirrors current tech booms, where innovation blurs with speculation. Key figures from the past, such as Raskob and Mitchell, are contrasted with today’s tech and finance leaders, highlighting how power and influence evolve. The discussion examines whether today’s asset valuations reflect a bubble or deeper macroeconomic imbalances, noting anomalies in gold and bitcoin adoption. AI's potential to disrupt labor markets is compared to 1929’s economic fallout, though current institutional hesitation suggests psychological rather than financial constraints. Unlike post-1929, recent crises have fueled rising socialist sentiment, partly due to policy missteps and skewed perceptions of mid-20th century prosperity. The need for a modern 'New Deal' is debated, focusing on spending discipline, tariff policy, and infrastructure resilience. Sorkin also shares insights on adapting his book for film and the challenges of storytelling in long-form media.
08:44
08:44
John Raskob was the Elon Musk of his era, promoting mass investment in stocks.
19:27
19:27
The Glass-Steagall Act originated from business conflicts, not purely political motives.
26:21
26:21
Regret over not investing in Bitcoin earlier despite knowing its potential
30:17
30:17
AI is a real economy phenomenon driving resource reallocation, not just media hype.
38:16
38:16
The 1950s American dream was built on post-WWII monopoly power, not pure capitalism.
45:43
45:43
The cost of lacking resource independence is measured in human lives and rarely accounted for.
46:51
46:51
I haven't sold the movie rights yet, but there are two main ways to approach it in today's streaming landscape.