Name: What the Crash of 1929 Can Tell Us About Today
Uploaded: 2026-01-17T05:00:17+00:00
Duration: 424 s

Speakers

Andrew Ross Sorkin — Co-Anchor, Squawk Box

Summary

Andrew Ross Sorkin joins Bloomberg Businessweek to discuss his book on the 1929 crash and what it says about today. He contrasts modern regulatory and technological safeguards with current risks from high debt, private credit opacity, short-term Treasury issuance, and faster digital bank runs. He also argues that policymakers learned a crisis playbook that creates an implicit market put, while warning that fiscal debt levels could test the bond market.

Andrew Ross Sorkin discusses his book on the 1929 crash and comparisons to today's markets.
He argues modern regulation, technology, the SEC, FDIC, and bank capital requirements make a repeat of 1929 less likely.
He says policy lessons from the Great Depression created a central-bank playbook and an implicit market put.
He warns that high U.S. debt could make a future fiscal crisis response difficult and risk a bond-market backlash.
He is concerned about private credit transparency and interlinkages, though he questions whether it is systemic.
He says short-term Treasuries are a particular worry because of heavy issuance and quicker repayment risk.
He notes technology and social media can accelerate bank runs, as seen with Silicon Valley Bank.
He discusses FOMO, inequality, and lottery-ticket risk-taking as enduring behavioral forces.

Ideas

Andrew Ross Sorkin Co-Anchor, Squawk Box 2:57

Central bank playbook creates market put

Sorkin says the key lesson from 1929 and the Great Depression is that when there is a crash, crisis, or panic, policymakers throw money at the problem, even if politically unpopular, as Bernanke did in 2008 and as was done during the pandemic. Because investors now believe this playbook exists, there is effectively a policy put under the market.

Andrew Ross Sorkin Co-Anchor, Squawk Box 3:30

High U.S. debt threatens Treasury market

The one big difference from 1929 is today's high U.S. debt burden. If a crash occurred and the government tried another massive fiscal rescue, the bond market could hit a red line and demand much higher interest rates, potentially forcing austerity and a severe unemployment outcome. This is a risk setup for U.S. Treasuries rather than a current active short.

Andrew Ross Sorkin Co-Anchor, Squawk Box 5:11

Private credit opacity raises concerns

Private credit always concerns Sorkin because of its lack of transparency. He says even the Federal Reserve does not fully grasp how interlinked debt and credit are in the private credit market. Although he notes the market may be around $2 trillion and is not certain it is systemic, the opacity and interconnection risk are enough to make him cautious.

Andrew Ross Sorkin Co-Anchor, Squawk Box 5:41

Short-term Treasury issuance raises refinancing risk

Sorkin says he might worry more today about short-term Treasuries. The U.S. has been selling short-term Treasuries aggressively to get a cheaper rate, but that makes the debt more complicated because it must be paid back or refinanced more quickly if a crisis occurs.

What the Crash of 1929 Can Tell Us About Today

Summary

Ideas

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