Wall Street’s Future: Echoes of 1929?

A financial journalist has raised alarms that Wall Street might be facing a stock market crash reminiscent of 1929, citing soaring stock prices, speculative bubbles, and declining financial security that seem strikingly similar to the period leading up to the Great Depression.

Andrew Ross Sorkin, who co-hosts CNBC’s “Squawk Box” and founded the New York Times’ DealBook newsletter, expressed his concerns during an interview with CBS News’ “60 Minutes,” revealing his apprehension about the market being on the verge of a significant downturn.

Sorkin, who has authored a new book on the 1929 crash, likened today’s booming AI-driven market to the “Roaring Twenties,” the decade that crashed almost a century ago.

“Interestingly, between 1928 and September 1929, the stock market increased by a staggering 90%,” Sorkin noted, highlighting the rapid growth before the downturn.

“I’m concerned—we might be getting priced out in a way that’s not really sustainable. It feels like we could be either experiencing an incredible boom, or, well, everything’s just too expensive,” he added.

When correspondent Leslie Stahl mentioned a possible repetition of history, Sorkin responded directly, “1929.”

This past year has seen strong double-digit gains in the stock market, with the S&P 500 rising about 13% and the Dow Jones Industrial Average increasing by 9% through October.

Despite some fluctuations influenced by political and trade tensions, both indexes reached multiple all-time highs in 2025, largely fueled by a surge in technology stocks. Sorkin pointed out that while innovation in tech and AI is genuine, the overwhelming influx of investor funds into AI companies feels reminiscent of a speculative bubble.

“It’s tough to argue that we’re not in some kind of bubble,” he remarked, suggesting the current economy seems almost artificially buoyed by the technical boom.

He observed that hundreds of billions of dollars are currently being invested in AI.

“This could either be a gold rush or a sugar rush—we likely won’t truly know which it is for a few years,” he concluded.

Reflecting on past history, Sorkin identified unsettling parallels between the present economic landscape and the speculative behavior that preceded the 1929 crisis. He noted that many ordinary Americans were lured into the market by promises of easy credit and access to wealth.

Today’s investors might also face similar temptations, getting involved in private markets, venture capital, and low-regulation startups where risk often masquerades as opportunity.

“We’re not likely to crash tomorrow,” Sorkin pointed out, though he acknowledged the market is currently fueled by speculation with rising debt levels.

He noted an increasing divide, stating, “For the last couple of decades, those with access to private equity and venture capital have clearly outnumbered those who don’t.”

Sorkin expressed concern that the safeguards put in place after 1929, including SEC disclosure rules, are deteriorating. “The Consumer Protection Bureau basically doesn’t exist anymore, and that worries me,” he explained.

He argued that efforts to broaden investment opportunities to smaller investors by easing access to risky private markets could have negative consequences.

“There’s a widespread belief that only the elite have had access to these types of investments—like Facebook and Uber before they went public,” Sorkin remarked.

“There’s significant pressure to open up the market to more investors, driven in part by the Trump administration and the industry’s attempts to attract more capital,” he noted.

While Sorkin acknowledged that “guardrails” have historically protected many investors, he remarked that some might argue these protections also hindered wealth accumulation.

The newspaper has reached out to the White House for comments regarding Sorkin’s insights.