Andrew Ross Sorkin’s latest work, “1929: Inside the Greatest Crash in Wall Street History — and How It Shattered a Nation,” delves into the catastrophic events of the stock market crash of 1929. For nearly eight decades, this crash has been viewed as a pivotal moment that linked the prosperity of the Roaring Twenties to the hardships of the Great Depression. Sorkin draws parallels between this event and the financial chaos during the 2008 recession, emphasizing a cycle of greed and public disaster.
Overview of the Book
Sorkin, a New York Times journalist, spent eight years researching to create a comprehensive narrative of the 1929 crash. This book exceeds his previous work, “Too Big to Fail,” by incorporating newly discovered documents, memoirs, and a wealth of historical literature.
Key Themes and Insights
The author asserts that the lessons from 1929 remain relevant today. He links current market trends—particularly in cryptocurrency and artificial intelligence—to the historical failures of the past. Sorkin cautions that these modern manias often lead investors to believe they have learned from history, yet repetition of mistakes is inevitable.
- Market Mania: Sorkin indicates that today’s market behaviors echo those of the 1920s.
- Human Nature: He discusses how human folly contributes to financial crises.
The Players in the 1929 Crash
The narrative focuses on prominent Wall Street figures involved in unethical practices. Sorkin portrays a world rife with corruption and incompetence, detailing how key players manipulated market conditions for personal gain.
- J.P. Morgan: Engaged in offering stocks to politicians at discounted rates.
- Richard Whitney: The New York Stock Exchange president who embezzled over $1 million.
- Herbert Hoover: The last president before the crash, who resisted taking decisive action.
Critiques and Observations
Sorkin’s work is noted for its vivid storytelling and detail. However, criticisms arise regarding his prose, which sometimes relies on clichéd expressions. Despite these criticisms, the book’s portrayal of excess and moral decay is compelling.
Interestingly, Sorkin appears to sympathize with some of the financiers he critiques. He argues that many acted within the norms of their environment, suggesting that chaos and deceit are inherent in the market system.
Lessons for Contemporary Times
While Sorkin presents an engaging narrative peppered with true-crime elements, the overarching questions about market ethics and accountability remain. The book serves as a reminder that the financial mistakes of the past continue to resonate today.
In conclusion, “1929” provides an in-depth examination of one of America’s most significant economic disasters. It highlights the intertwining of human behavior and market dynamics, offering valuable insights into the nature of financial markets and the individuals who navigate them.
The book, published by Viking, spans over 400 pages and retails for $35.
