A star-studded gathering at the newly renovated Waldorf Astoria in New York celebrated the launch of Andrew Ross Sorkin’s latest book, ‘1929,’ with prominent figures from finance and media in attendance, while Sorkin issued warnings about unsettling parallels between current market conditions and the pre-crash era of 1929. The event underscored the timely relevance of his historical analysis amid today’s economic uncertainties.
The cocktail party, held this week, brought together a power crowd including JPMorgan Chase CEO Jamie Dimon, former Mayor Michael Bloomberg, hedge fund manager Bill Ackman, lifestyle mogul Martha Stewart, and other luminaries such as Barry Diller, Julianna Margulies, and former Treasury Secretary Tim Geithner. They toasted Sorkin’s new tome, which delves into the historic stock market crash and its aftermath, with the Waldorf Astoria serving as a symbolic venue due to its own financing coinciding with the 1929 market collapse.
Sorkin, renowned for his book ‘Too Big to Fail,’ hosted the event and expressed hope that examining the past could help avert future crises. He told attendees, ‘I’m hoping we never have another crash. I wrote ‘1929’ as the prequel to ‘Too Big to Fail’—in hopes I never have to write the sequel.’ His remarks resonated with guests, one of whom noted that ‘history may not repeat, but it sure rhymes,’ highlighting the event’s focus on current market jitters.
In interviews surrounding the book’s release, including a segment on CBS’s ’60 Minutes,’ Sorkin elaborated on the worrying similarities between today’s economic environment and the Roaring Twenties. He pointed to rampant speculation, high levels of debt, and the artificial intelligence boom propping up markets, warning that a crash is inevitable. ‘I just can’t tell you when, and I can’t tell you how deep,’ Sorkin said, ‘but I can assure you, unfortunately, we will have a crash.’
The book, ‘1929: Inside the Greatest Crash in Wall Street History – and How It Shattered a Nation,’ explores how credit and margin buying fueled the pre-crash frenzy, drawing direct parallels to modern financial practices. Sorkin emphasized that while technology and AI drive current growth, they also contribute to potential overvaluation and bubble risks. He described how in 1929, ordinary investors were lured into the market with borrowed money, a practice that has evolved but persists in forms like leveraged trading and crypto speculation.
Current market highs have Sorkin feeling anxious, as he stated in his CBS interview, ‘I’m anxious that we are at prices that may not feel sustainable.’ He questioned whether the boom is part of a remarkable technological advancement or if everything is overpriced, reflecting on the speculative nature of investments today. This anxiety is compounded by the erosion of financial guardrails, such as reduced Securities and Exchange Commission regulations and the diminished role of consumer protection agencies.
Sorkin also raised concerns about the push to democratize investing, citing examples like BlackRock CEO Larry Fink’s proposal to include private investments and cryptocurrencies in retirement portfolios. While Fink argued this offers diversification opportunities, Sorkin warned that it removes protective barriers and increases risks for ordinary investors, mirroring the unchecked speculation of 1929. He illustrated this with an anecdote about a ‘Sorkin coin’ that briefly surged to $170 million in trading value before collapsing, showcasing modern market volatility.
As the book hits shelves, Sorkin’s message serves as a cautionary tale for investors and policymakers, urging vigilance in an era of rapid technological change and financial innovation. The Waldorf Astoria event not only celebrated literary achievement but also sparked crucial conversations about economic stability, with implications for how society navigates potential future downturns and learns from the past.