CNBC: Former Fed Chair Ben Bernanke Wins 2022 Nobel Prize for Economics

SORKIN We ve got ░░░░░░░░ breaking news big news ░░░░░░░░ not a person who ░░░░░░░░ would be our audience ░░░░░░░░ former Fed Chairman Ben ░░░░░░░░ one of the winners ░░░░░░░░ the 2022 Nobel Prize ░░░░░░░░ Economics Bernanke along with ░░░░░░░░ Professor Douglas Diamond and ░░░░░░░░ Dybvig were awarded the ░░░░░░░░ for the research of ░░░░░░░░ and financial crisis The ░░░░░░░░ Prize Committee saying that ░░░░░░░░ research has significantly improved ░░░░░░░░ understanding of the role ░░░░░░░░ banks in the economy ░░░░░░░░ I know there s ░░░░░░░░ debates over these various ░░░░░░░░ And this one I ░░░░░░░░ is probably going to ░░░░░░░░ us perhaps one of ░░░░░░░░ biggest because there s ░░░░░░░░ a debate going now ░░░░░░░░ 2008 about how the ░░░░░░░░ reacted how the Fed ░░░░░░░░ to crises We had ░░░░░░░░ situation this this most ░░░░░░░░ pandemic crisis which is ░░░░░░░░ type of crisis But ░░░░░░░░ would argue as you ░░░░░░░░ I ve been arguing ░░░░░░░░ 2008 that the Fed ░░░░░░░░ it right better than ░░░░░░░░ could have imagined There ░░░░░░░░ the haters the sort ░░░░░░░░ anti Wall Street ink ░░░░░░░░ I ve always thought ░░░░░░░░ great perspective people would ░░░░░░░░ around and say this ░░░░░░░░ actually done in possibly ░░░░░░░░ That was 2008 SORKIN ░░░░░░░░ close as possible Now ░░░░░░░░ know that d be ░░░░░░░░ Did you stay too ░░░░░░░░ KERNEN That was 2008 ░░░░░░░░ SORKIN and all of ░░░░░░░░ KERNEN We re dealing ░░░░░░░░ this right now And ░░░░░░░░ SORKIN That s correct ░░░░░░░░ said that last chapter ░░░░░░░░ not written yet on ░░░░░░░░ out of the roach ░░░░░░░░ that we checked into ░░░░░░░░ we can t get ░░░░░░░░ of so we ll ░░░░░░░░ how this the last ░░░░░░░░ is not written I ░░░░░░░░ hopeful I m hopeful ░░░░░░░░ we can extricate ourselves ░░░░░░░░ he s definitely who ░░░░░░░░ you think ushered in ░░░░░░░░ the easy money era ░░░░░░░░ it s probably Bernanke ░░░░░░░░ by Yellen to some ░░░░░░░░ but but it s ░░░░░░░░ and we re still ░░░░░░░░ to dig our way ░░░░░░░░ of a 6 trillion ░░░░░░░░ sheet up from a ░░░░░░░░ of 100 million or ░░░░░░░░ 100 billion crosstalk SORKIN ░░░░░░░░ but I KERNEN Good ░░░░░░░░ Well the only the ░░░░░░░░ thing the problem with ░░░░░░░░ who say they shouldn ░░░░░░░░ have done it because ░░░░░░░░ should have just taken ░░░░░░░░ medicine while we had ░░░░░░░░ they are arguing that ░░░░░░░░ should have just let ░░░░░░░░ rip and had all ░░░░░░░░ pain then instead of ░░░░░░░░ to find some way ░░░░░░░░ maneuver out of it ░░░░░░░░ ease some of the ░░░░░░░░ in some way give ░░░░░░░░ time to crosstalk KERNEN ░░░░░░░░ might land in Jay ░░░░░░░░ lap actually because it ░░░░░░░░ have been all the ░░░░░░░░ because people say all ░░░░░░░░ way up to mid ░░░░░░░░ we needed to stay ░░░░░░░░ we were So that ░░░░░░░░ sort of Bernanke might ░░░░░░░░ I will say one ░░░░░░░░ that a Nobel Prize ░░░░░░░░ know what else I ░░░░░░░░ you this all the ░░░░░░░░ on the way down ░░░░░░░░ down on the road ░░░░░░░░ s road I 95 ░░░░░░░░ whatever it is you ░░░░░░░░ what he previously had ░░░░░░░░ the Ben Bernanke interchange ░░░░░░░░ South Carolina There s ░░░░░░░░ little place where there ░░░░░░░░ like exits and bridges ░░░░░░░░ overpasses and there s ░░░░░░░░ sign that says that ░░░░░░░░ SORKIN Wow KERNEN Bernanke ░░░░░░░░ from south is from ░░░░░░░░ Carolina right SORKIN Yeah ░░░░░░░░ he s crosstalk KERNEN ░░░░░░░░ now he s got ░░░░░░░░ so that s I ░░░░░░░░ that s better SORKIN ░░░░░░░░ QUICK Yeah KERNEN Although ░░░░░░░░ d love an interchange ░░░░░░░░ maybe a little if ░░░░░░░░ pay enough for a ░░░░░░░░ mile of picking up ░░░░░░░░ trash you can you ░░░░░░░░ get to Andrew Sorkin ░░░░░░░░ QUICK Or you can ░░░░░░░░ to indecipherable in New ░░░░░░░░ rest areas KERNEN Or ░░░░░░░░ rest area The rest ░░░░░░░░ I don t want ░░░░░░░░ after me Laughter Because ░░░░░░░░ goes on there I ░░░░░░░░ t think so SORKIN ░░░░░░░░ on the roach motel ░░░░░░░░ KERNEN Yeah SORKIN I ░░░░░░░░ argue to you the ░░░░░░░░ motel only existed because ░░░░░░░░ then got into a ░░░░░░░░ crisis KERNEN That s ░░░░░░░░ I mean QUICK Yeah ░░░░░░░░ Yeah SORKIN And meeting ░░░░░░░░ pandemic crisis KERNEN I ░░░░░░░░ that s why it ░░░░░░░░ land in Jay Powell ░░░░░░░░ lap SORKIN Had that ░░░░░░░░ happened I don t ░░░░░░░░ if we would be ░░░░░░░░ the same conversation I ░░░░░░░░ there ll be some ░░░░░░░░ about whether this persisted ░░░░░░░░ went on too long ░░░░░░░░ this or that maybe ░░░░░░░░ I QUICK Which is ░░░░░░░░ it s KERNEN But ░░░░░░░░ was crosstalk QUICK it ░░░░░░░░ never going to be ░░░░░░░░ perfect SORKIN Right QUICK ░░░░░░░░ s never going to ░░░░░░░░ a perfect example where ░░░░░░░░ can say this happened ░░░░░░░░ we can clearly definitively ░░░░░░░░ that this was a ░░░░░░░░ or that this was ░░░░░░░░ Right thing KERNEN I ░░░░░░░░ it was argued between ░░░░░░░░ two crises There was ░░░░░░░░ to reload the powder ░░░░░░░░ we stayed in emergency ░░░░░░░░ for too long I ░░░░░░░░ you talk in 2010 ░░░░░░░░ And think of that ░░░░░░░░ were quite a few ░░░░░░░░ where we were SORKIN ░░░░░░░░ I hate to say ░░░░░░░░ but the truth is ░░░░░░░░ you remember when you ░░░░░░░░ have wanted to start ░░░░░░░░ do that KERNEN Yeah ░░░░░░░░ It basically would have ░░░░░░░░ probably 2016 I m ░░░░░░░░ saying KERNEN Yeah And ░░░░░░░░ If you think through ░░░░░░░░ timing of that KERNEN ░░░░░░░░ SORKIN Well no I ░░░░░░░░ KERNEN Well we never ░░░░░░░░ And then crosstalk SORKIN ░░░░░░░░ I know we didn ░░░░░░░░ but I m saying ░░░░░░░░ was really 2016 when ░░░░░░░░ economy was back crosstalk ░░░░░░░░ and then Jay and ░░░░░░░░ did Jay Powell finally ░░░░░░░░ was yeah SORKIN In ░░░░░░░░ was in what 16 ░░░░░░░░ KERNEN Yeah OK SORKIN ░░░░░░░░ the point was that ░░░░░░░░ economy was in really ░░░░░░░░ of in a in ░░░░░░░░ position ready to to ░░░░░░░░ And then we got ░░░░░░░░ a position frankly politically ░░░░░░░░ this country where we ░░░░░░░░ a president who was ░░░░░░░░ there publicly screaming from ░░░░░░░░ rooftops to keep interest ░░░░░░░░ as low as humanly ░░░░░░░░ KERNEN Right SORKIN And ░░░░░░░░ we ve debated about ░░░░░░░░ politics of of interest ░░░░░░░░ and Federal Reserve and ░░░░░░░░ political pressures on KERNEN ░░░░░░░░ And then crosstalk SORKIN ░░░░░░░░ these different Federal Reserve ░░░░░░░░ KERNEN then it seemed ░░░░░░░░ immediate lower Then it ░░░░░░░░ like it was right ░░░░░░░░ for crosstalk QUICK But ░░░░░░░░ it was also KERNEN ░░░░░░░░ do think they give ░░░░░░░░ too many economic like ░░░░░░░░ guys win every year ░░░░░░░░ mean Stiglitz wins one ░░░░░░░░ then some other guy ░░░░░░░░ the opposite side wins ░░░░░░░░ by the time you ░░░░░░░░ done it s like ░░░░░░░░ opinions of both won ░░░░░░░░ Prizes Because in economics ░░░░░░░░ nobody knows what it ░░░░░░░░ not a science It ░░░░░░░░ I don t know ░░░░░░░░ it is It s ░░░░░░░░ dismal science I know ░░░░░░░░ Paul Krugman I mean ░░░░░░░░ I mean the weird ░░░░░░░░ is is you had ░░░░░░░░ Trump who was out ░░░░░░░░ screaming for lower interest ░░░░░░░░ but KERNEN Presidents use ░░░░░░░░ do that QUICK some ░░░░░░░░ the politicians some of ░░░░░░░░ politicians on the left ░░░░░░░░ too KERNEN Yeah QUICK ░░░░░░░░ Warren and others KERNEN ░░░░░░░░ now QUICK They ve ░░░░░░░░ so mad about them ░░░░░░░░ rates even now It ░░░░░░░░ which is why the ░░░░░░░░ should be an independent ░░░░░░░░ KERNEN And I m ░░░░░░░░ sure and I am ░░░░░░░░ on that side of ░░░░░░░░ but SORKIN Right KERNEN ░░░░░░░░ don t think a ░░░░░░░░ economic slowdown is the ░░░░░░░░ way to you know ░░░░░░░░ to take care of ░░░░░░░░ mistakes you ve made ░░░░░░░░ printing too much money ░░░░░░░░ mean that everybody gets ░░░░░░░░ s everybody gets in ░░░░░░░░ I wish there was ░░░░░░░░ way to do it ░░░░░░░░ there is The supply ░░░░░░░░ And Liz just tried ░░░░░░░░ QUICK Yeah but we ░░░░░░░░ at zero for so ░░░░░░░░ so long KERNEN I ░░░░░░░░ Look at the think ░░░░░░░░ what the balance sheet ░░░░░░░░ that we re trying ░░░░░░░░ shrink at this point.”