Could Wall Street be teetering on the edge of a historic disaster?
According to the New York Post, CNBC anchor Andrew Ross Sorkin is sounding the alarm on a potential stock market crash that echoes the catastrophic 1929 collapse, blaming speculative bubbles and weakened financial protections.
Sorkin, a seasoned financial journalist with two decades of market coverage, co-hosts CNBC’s “Squawk Box” and founded the New York Times’ DealBook newsletter. His latest warnings, detailed in a new book about the 1929 crash, draw stark parallels between today’s economy and the debt-driven speculation of the “Roaring Twenties.”
Back in the late 1920s, the stock market soared 90% from 1928 to September 1929, fueled by easy credit and wild optimism. Sorkin sees a similar frenzy today, with the AI-driven boom pushing tech stocks to dizzying heights. He argues this rush of investor money into artificial intelligence mirrors the dangerous hype of a century ago.
Hundreds of billions are pouring into AI companies, propelling the S&P 500 up 13% and the Dow Jones Industrial Average up 9% over the past year through October 2025. Both indices have smashed multiple record highs this year, largely on the back of surging technology stocks. Yet, Sorkin cautions, “I think it’s hard to say we’re not in a bubble.”
Despite brief volatility tied to political and trade tensions, the market’s 2025 performance remains robust. But Sorkin isn’t buying the hype—he warns this could be a “sugar rush” rather than a sustainable gold rush.
One of Sorkin’s biggest concerns is the erosion of post-1929 protections, like SEC disclosure rules and consumer safeguards. He notes the Consumer Protection Bureau is now “practically non-existent,” leaving everyday investors vulnerable. This rollback, he argues, strips away critical guardrails.
Adding fuel to the fire, there’s a growing push to “democratize” investing by opening riskier private markets to small investors. Sorkin points out that while elites have historically profited from early access to companies like Facebook or Uber, exposing Main Street to these lightly regulated ventures disguises high risk as opportunity.
This trend, partly driven by the Trump administration and industry interests, echoes the 1920s when ordinary Americans were lured into markets with easy credit. Sorkin sees history repeating as modern investors chase wealth in speculative corners of the economy. He warns that this could amplify a potential meltdown.
Sorkin doesn’t predict an immediate collapse, but he’s uneasy about unsustainable prices. “I’m anxious that we are at prices that may not feel sustainable,” he says. The economy, he argues, might be artificially propped up by the AI craze.
Debt levels in the market are also climbing, a troubling parallel to the pre-1929 era. Speculation is rampant, and while the fallout may not hit tomorrow, the ingredients for a crisis are simmering. For free-market advocates, this raises questions about whether innovation is outpacing prudence. What’s the takeaway for wealth builders? Sorkin’s warnings remind us that markets don’t climb forever—prudence matters. If you’re riding the AI wave, consider balancing your portfolio with less volatile assets.
For center-right investors skeptical of government overreach, the weakening of financial oversight is a double-edged sword. Less regulation can unleash opportunity, but as Sorkin notes, it also heightens risk for the unprepared. Stay informed about where your money is going, especially in trendy sectors like AI.
Think like a Chicago School economist—efficiency and frugality are your allies. Don’t chase speculative bubbles; instead, diversify and prioritize long-term value over short-term hype. Research companies beyond the headlines, focusing on fundamentals rather than fads.
Finally, Sorkin’s book, released this week, offers a deeper dive into the 1929 lessons we might be ignoring. Use his insights to stress-test your investments against historical patterns. In a market potentially poised for a fall, building wealth means preparing for the worst while seizing smart opportunities.