Bloomberg Podcasts · Weekend Listen: Why 2026 Is Beginning to Look Like 1929 (with Andrew Ross Sorkin) | Big Take

1. 1. Andrew Ross Sorkin's new book, "1929," distinguishes itself from prior economic histories by offering a character-driven narrative, focusing on the people and their decisions rather than abstract economic systems.
2. 2. A notable difference between the 1929 crash and the 2008 financial crisis was the public's perception of blame; many in 1929 primarily blamed themselves due to 'FOMO,' while in 2008, people widely pointed fingers at institutions.
3. 3. The financial system of 1929 operated with virtually no regulatory oversight, allowing practices like insider trading to be legal, lacking a Securities and Exchange Commission (SEC), and having investment and commercial banks intertwined without capital requirements.
4. 4. Current trends indicate a dismantling of financial guardrails, such as recent changes permitting bank analysts to publish bullish internal research on IPOs their banks underwrite, a practice previously restricted after the dot-com bust.
5. 5. The phrase "democratization of finance," frequently used in the late 1920s, is resurfacing today to describe expanding retail investor access to markets, including large IPOs like SpaceX and the availability of crypto in 401(k) retirement plans.
6. 6. Every major technological revolution
7. 7. Speculation, while risky, is considered a necessary component for technological and economic progress, suggesting that the policy goal should be to prevent bubbles from growing too large rather than eliminating them entirely.
8. 8. The deep impact of the 1929 crash was exacerbated by ordinary Americans using extreme leverage, often 10-to-1, meaning a relatively modest market decline of 17% by year-end wiped out fortunes and shattered public confidence.
9. 9. Sorkin is concerned about a potential AI bubble, questioning if the massive infrastructure investment will yield expected productivity and if widespread job losses due to AI could create a political backlash before the technology's full benefits are realized.
10. 10. Ben Bernanke's playbook for financial crises, refined from studying the Great Depression, emphasizes swift and massive government intervention by 'flooding the zone with money' to prevent economic collapse.
11. 11. A key concern for future financial crises is the sustainability of the "write the check" policy, with potential bailouts possibly reaching three to five trillion dollars, raising questions about whether the bond market will tolerate such sovereign debt levels.
12. 12. Deep political polarization, fueled by economic inequality and the increasing influence of capital over labor, is creating an 'oligarchic' economy and a 'doom loop' where money extensively infects politics.