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Andrew Ross Sorkin, author of too big to fail and co-anchor of squawk boxHe said he observed Similarities Between Today’s Economy in the United States and that economy before 1929 wall Street accident that caused great depression,
Sorkin, a financial journalist who studies patterns in the economy, told 60 minutes The technological advances powering the U.S. economy, coupled with the Trump administration’s lowering of guardrails, feel like an echo from history.
“We will have our downfall,” Sorkin explained. 60 minutes In An episode that aired on Sunday.
Sorkin reiterated, “I can’t tell you when, and I can’t tell you how deep. But I can assure you, unfortunately, I wish I wasn’t saying this, we would have had an accident.”
He pointed to the US economy’s consistently strong growth over the past few years, which he attributed to growing interest in advancing artificial intelligence and other technologies.
Although the stock market has seen rises and falls over the past few months as President Donald Trump has imposed new tariffs – the economy is still strong.
But Sorkin says he is “concerned” that these prices are not sustainable and are being promoted Speculation and short-term interest in AI – Similar to 1929, when ordinary investors made speculative, risky and ultimately unsustainable investments.
Once traders and experienced investors realized that the market could no longer go up, they sold their shares – causing financial disaster for the common investor.
Since the Great Depression, Congress has passed laws to regulate investing and protect ordinary investors. Even more action was taken to protect average Americans after the Great Recession of 2008.
But the Trump administration has sought to dismantle some of those regulatory agencies, such as the Consumer Financial Protection BureauWhich protects people from predatory lenders or practices. Sorkin says the weakening of the railing is also a worrying sign.
“That’s what worries me,” said Sorkin, whose new book 1929 Addresses the Wall St. crash and its consequences. “It’s not that we’re going off a cliff tomorrow. It’s that there is speculation in the market today, the amount of debt in the market is increasing today, and all this is happening against the backdrop of the guardrails being removed.”
Other financial experts have also sounded the alarm, seeing volatile markets as a sign of insecurity among investors. JPMorgan Chase CEO Jamie Dimon predicted this Impact of Trump’s sweeping tariffs And rising inflation will materialize soon. Billionaire investor Ray Dalio also observed Rising government debt and wealth inequality will create an internal crisis.
The future of the US economy has become more uncertain due to Trump’s tariffs on specific sectors such as pharmaceuticals, steel and automobiles. His recent threat to impose 100 percent tariffs on China has increased the sense of economic uncertainty.