Andrew Ross Sorkin on the Stock Market Crash That Shattered America

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Odd Lots 42 min 7 speakers 6 chapters transcribed 1 month ago
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Nathan Hager 0:00
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Unknown 0:32
Bloomberg Audio Studios, Podcasts,
Jason Kelly 0:35
Radio News.
Joe Weisenthal 0:48
Hello and welcome to another episode of the Odd Lots Podcast. I'm Jill Weisenthal.
Tracy Alloway 0:53
And I'm Tracy Alloway.
Joe Weisenthal 0:54
Tracy, it's been a theme in a lot of our episodes lately, but we are in an age where trading and speculation is just part of the culture. We know that stocks are up. We know that a lot of things are up, but that's different than it being part of pop culture, which it is now.
Tracy Alloway 1:08
It's a culture of lines. Lines going up. People watch the lines.
Joe Weisenthal 1:12
I really think that if you're walking down the street or on the subway and you see like a guy staring down at his phone, there's a good chance that he's like looking at a Bitcoin chart. A Bitcoin chart, yeah. Yeah. At any given moment.
Tracy Alloway 1:22
Well, this was one of the things about Bitcoin. It was so volatile there was actually something to watch. There's like an entertainment factor. But of course, when you get this kind of speculative activity, everyone starts worrying about when's it gonna end? When's the crash?
Joe Weisenthal 1:37
I have this theory that nobody likes bubbles. And that basically if there is a bubble, there's two camps of people. One camp that is really upset that they're missing out on it. And one camp that is really anxious that they're gonna miss the top. And that there are actually very few people on the camp where it's like, oh, this is like really good. I'm really happy. I'm really relieved. And the
Tracy Alloway 1:55
people who nail the timing are pretty pleased with themselves, I assume.
Joe Weisenthal 1:59
And there's like five of those people. You know, like that's the problem. Afterwards somebody's like, Oh, I sold the top, I feel good.
Tracy Alloway 2:04
Yeah, absolutely. Okay, so famous crashes. Famous crashes. We're gonna talk about one of them.
Joe Weisenthal 2:09
You know, I remember the dot com era very well. I don't remember the market environment we're gonna talk about today.
Tracy Alloway 2:14
Uh the nineteen twenties? You have no memory of that? Shame on you.
Joe Weisenthal 2:18
I don't remember nineteen twenty nine very well.

Why do today’s retail investors treat stock charts like a cultural obsession?

Joe Weisenthal 2:20
I did read uh John Kenneth Galbraith's famous book, The Great Crash, but There is a new book out on the great stock market boom and then crash of 1929. We are gonna be speaking with the author, someone I'm thrilled to talk to, someone whose uh accomplishments and work ethic puts us all to shame. We're gonna be speaking with the one and only Andrew Rossorkin, founder of Deal Book at New York Times, co-creator of Billions. Co host of some squawk box C N B C I made that joke when we had uh Jim Kramer on as if I had never heard the network and now the author of nineteen twenty nine, Inside the Greatest Crash in History and How It Shattered a Nation. Andrew, thank you so much for coming on Odlots, thrilled to have you here.
Andrew Ross Sorkin 2:59
Thank you for having me. I feel like I'm a a longtime listener, first time caller. Amazing.
Joe Weisenthal 3:03
Thank you. So this isn't the first time nineteen twenty nine has been written about and the Galbraith book. It's probably like that was up until now probably the most famous. That was a great book,
Andrew Ross Sorkin 3:12
right?
Joe Weisenthal 3:12
Yeah. What was the impulse to go back and write a book about this uh this period of time?
Andrew Ross Sorkin 3:18
To be honest with you, it was about 10 years ago. I'd written too big to fail. People used to ask me because I had written about the financial crisis of 2008. They'd ask me questions about 1929. And the truth was, I didn't really have answers because I sort of knew, I think, like most of the public today, that something pretty bad happened. Then I had I had read the Galbrath book. But sort of beyond that, I was lacking. details. And I honestly I went on a vacation. It was like a nerdy vacation thing to do.

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