>>> BREAKING NEWS. MARKETS JUST OPENED AND DOWN

MARKETS JUST OPENED AND DOWN 1,700.

1,700. JOINING ME TO DISCUSS, ANDREW

JOINING ME TO DISCUSS, ANDREW ROSS SORKIN, CO-AUTHOR OF

ROSS SORKIN, CO-AUTHOR OF "SQUAWK BOX," "NEW YORK TIMES"

"SQUAWK BOX," "NEW YORK TIMES" COLUMNIST OF TOO BIG TO FAIL AND

COLUMNIST OF TOO BIG TO FAIL AND GARY COHN, FORMER DIRECTOR OF

GARY COHN, FORMER DIRECTOR OF THE ECONOMIC COUNCIL AND CHIEF

THE ECONOMIC COUNCIL AND CHIEF ECONOMIC ADVISER TO PRESIDENT

ECONOMIC ADVISER TO PRESIDENT DONALD TRUMP DURING THE FIRST

DONALD TRUMP DURING THE FIRST TWO YEARS OF HIS PRESIDENCY.

TWO YEARS OF HIS PRESIDENCY. AND FORMER PRESIDENT OF GOLDMAN

AND FORMER PRESIDENT OF GOLDMAN SACHS.

SACHS. WELCOME TO YOU BOTH.

WELCOME TO YOU BOTH. ANDREW, WE’VE GOT TO START WITH

ANDREW, WE’VE GOT TO START WITH YOU.

YOU. MARKETS ARE GETTING PUNCHED IN

MARKETS ARE GETTING PUNCHED IN THE FACE.

THE FACE. EXPLAIN WHAT’S GOING ON.

EXPLAIN WHAT’S GOING ON. >> WE’RE LOOKING AT A VERY TOUGH

>> WE’RE LOOKING AT A VERY TOUGH DAY IN THE MARKETS.

DAY IN THE MARKETS. AND, FRANKLY, THERE’S A REAL

AND, FRANKLY, THERE’S A REAL QUESTION OVER HOW MUCH THE

QUESTION OVER HOW MUCH THE CORONAVIRUS SPILLS INTO THE REAL

CORONAVIRUS SPILLS INTO THE REAL ECONOMY.

ECONOMY. WE SAW IT OVER THE WEEKEND.

WE SAW IT OVER THE WEEKEND. CRUDE PRICES HAVE NOW DROPPED

CRUDE PRICES HAVE NOW DROPPED 21%, WHICH MEANS EFFECTIVELY

21%, WHICH MEANS EFFECTIVELY THEY’RE GOING TO BE SOME ENERGY

THEY’RE GOING TO BE SOME ENERGY COMPANIES IN THE UNITED STATES

COMPANIES IN THE UNITED STATES AND ELSEWHERE THAT EFFECTIVELY

AND ELSEWHERE THAT EFFECTIVELY COULD GO OUT OF BUSINESS.

COULD GO OUT OF BUSINESS. WE’RE TALKING ABOUT A REAL LOSS

WE’RE TALKING ABOUT A REAL LOSS OF JOBS AND I THINK SOME REAL

OF JOBS AND I THINK SOME REAL QUESTIONS.

QUESTIONS. WHAT TOOK PLACE IN ITALY OVER

WHAT TOOK PLACE IN ITALY OVER THE WEEKEND, I THINK THE MARKET

THE WEEKEND, I THINK THE MARKET AND INVESTORS ARE TRYING TO

AND INVESTORS ARE TRYING TO EXTRAPOLATE OUT TO UNDERSTAND,

EXTRAPOLATE OUT TO UNDERSTAND, IS THAT COMING HERE, WHAT DOES

IS THAT COMING HERE, WHAT DOES THAT LOOK LIKE?

THAT LOOK LIKE? OUR 545 CASES THAT HAVE BEEN

OUR 545 CASES THAT HAVE BEEN IDENTIFIED, IS THAT NUMBER REAL,

IDENTIFIED, IS THAT NUMBER REAL, AND HOW MUCH LARGER IS THAT

AND HOW MUCH LARGER IS THAT NUMBER?

NUMBER? SO I THINK ALL OF THIS IS NOW

SO I THINK ALL OF THIS IS NOW GETTING INTO THE MARKETPLACE.

GETTING INTO THE MARKETPLACE. THERE ARE QUESTIONS ABOUT WHAT

THERE ARE QUESTIONS ABOUT WHAT ARE CALLED CIRCUIT BREAKERS IN

ARE CALLED CIRCUIT BREAKERS IN THE STOCK MARKET TODAY.

THE STOCK MARKET TODAY. AT 7%, IF THERE’S A 7% DECLINE,

AT 7%, IF THERE’S A 7% DECLINE, THERE’S A 15-MINUTE TIME-OUT.

THERE’S A 15-MINUTE TIME-OUT. THERE’S ANOTHER TIME-OUT AT 13%

THERE’S ANOTHER TIME-OUT AT 13% AND ANOTHER TIME-OUT AT 20%.

AND ANOTHER TIME-OUT AT 20%. BUT THIS IS THE FIRST TIME

BUT THIS IS THE FIRST TIME PEOPLE ARE TALKING ABOUT CIRCUIT

PEOPLE ARE TALKING ABOUT CIRCUIT BREAKERS.

BREAKERS. SO WE’RE INTO A NEW PERIOD HERE

SO WE’RE INTO A NEW PERIOD HERE WHERE INVESTORS ARE TRYING TO

WHERE INVESTORS ARE TRYING TO UNDERSTAND WHAT COULD HAPPEN.

UNDERSTAND WHAT COULD HAPPEN. MORGAN STANLEY PUT OUT A NOTE

MORGAN STANLEY PUT OUT A NOTE SAYING THE STOCK MARKET COULD

SAYING THE STOCK MARKET COULD DROP ANOTHER 10%.

DROP ANOTHER 10%. THEIR ESTIMATES IT COULD DROP

THEIR ESTIMATES IT COULD DROP FURTHER, AND I THINK WE’RE NOW

FURTHER, AND I THINK WE’RE NOW INTO A PERIOD OF DEMONSTRABLE

INTO A PERIOD OF DEMONSTRABLE FEAR, DARE I SAY.

FEAR, DARE I SAY. TO BE RESPONSIBLE ABOUT IT I

TO BE RESPONSIBLE ABOUT IT I DON’T WANT TO SUGGEST IT IS ALL

DON’T WANT TO SUGGEST IT IS ALL DOOM AND GLOOM, BUT CLEARLY IT

DOOM AND GLOOM, BUT CLEARLY IT IS GOING TO GET WORSE BEFORE IT

IS GOING TO GET WORSE BEFORE IT GETS BETTER.

GETS BETTER. >> GARY, WHAT DO YOU HAVE TO SAY

>> GARY, WHAT DO YOU HAVE TO SAY ABOUT ALL OF THIS?

ABOUT ALL OF THIS? >> WELL, LOOK, I AGREE WITH WHAT

>> WELL, LOOK, I AGREE WITH WHAT A LOT OF ANDREW JUST SAID, BUT I

A LOT OF ANDREW JUST SAID, BUT I THINK WHAT WE HAVE TO ASK

THINK WHAT WE HAVE TO ASK OURSELVES IS, WHY ARE WE HERE

OURSELVES IS, WHY ARE WE HERE AND HOW DID WE GET HERE?

AND HOW DID WE GET HERE? THINK OF WHERE WE WERE THREE OR

THINK OF WHERE WE WERE THREE OR FOUR SHORT WEEKS AGO.

FOUR SHORT WEEKS AGO. ALL-TIME RECORD HIGHS.

ALL-TIME RECORD HIGHS. WE HAD EMPLOYMENT NUMBERS FRIDAY

WE HAD EMPLOYMENT NUMBERS FRIDAY THAT REFLECTED WHERE WE WERE

THAT REFLECTED WHERE WE WERE LAST MONTH.

LAST MONTH. AND WHERE WE WERE LAST MONTH HAS

AND WHERE WE WERE LAST MONTH HAS NOTHING TO DO WITH WHERE WE ARE

NOTHING TO DO WITH WHERE WE ARE TODAY.

TODAY. AND I THINK PEOPLE HAVE TO

AND I THINK PEOPLE HAVE TO UNDERSTAND THAT.

UNDERSTAND THAT. >> BUT THREE OR FOUR WEEKS AGO,

>> BUT THREE OR FOUR WEEKS AGO, WE WERE NOT ADDRESSING A PENDING

WE WERE NOT ADDRESSING A PENDING PUBLIC HEALTH CRISIS.

PUBLIC HEALTH CRISIS. >> I COMPLETELY AGREE WITH THAT.

>> I COMPLETELY AGREE WITH THAT. I SAID WHERE WE ARE TODAY.

I SAID WHERE WE ARE TODAY. SO WE ARE NOW DEALING WITH AN

SO WE ARE NOW DEALING WITH AN ECONOMY WHERE THERE’S BEEN

ECONOMY WHERE THERE’S BEEN MASSIVE DEMAND DESTRUCTION IN

MASSIVE DEMAND DESTRUCTION IN THE OIL MARKET.

THE OIL MARKET. WE SAW OPEC TRY TO DEAL WITH THE

WE SAW OPEC TRY TO DEAL WITH THE DEMAND DESTRUCTION AND HOW THEY

DEMAND DESTRUCTION AND HOW THEY WERE GOING TO DEAL WITH EACH

WERE GOING TO DEAL WITH EACH OTHER.

OTHER. WOULD THEY ALL CUT BACK ON

WOULD THEY ALL CUT BACK ON PRODUCTION?

PRODUCTION? THERE WAS NO AGREEMENT REACHED

THERE WAS NO AGREEMENT REACHED ON CUTTING BACK PRODUCTION.

ON CUTTING BACK PRODUCTION. SO THE SAUDIS SAID, LOOK, IF

SO THE SAUDIS SAID, LOOK, IF WE’LL NOT ALL AGREE ON

WE’LL NOT ALL AGREE ON CURTAILING PRODUCTION, WE’LL

CURTAILING PRODUCTION, WE’LL FLOOD THE MARKET AND SHOW YOU.

FLOOD THE MARKET AND SHOW YOU. WE’LL TAKE SOME OF YOUR

WE’LL TAKE SOME OF YOUR HIGH-COST PRODUCERS AND FORCE

HIGH-COST PRODUCERS AND FORCE YOU TO SELL EVERY DROP OF OIL

YOU TO SELL EVERY DROP OF OIL YOU PRODUCE AT A LOSS.

YOU PRODUCE AT A LOSS. AND WE’LL SEE HOW LONG YOU CAN

AND WE’LL SEE HOW LONG YOU CAN DO THAT.

DO THAT. SO WE’RE REALLY HAVING SOMEWHAT

SO WE’RE REALLY HAVING SOMEWHAT IRRATIONAL BEHAVIOR AS PEOPLE

IRRATIONAL BEHAVIOR AS PEOPLE TRY AND PROTECT THEIR OWN

TRY AND PROTECT THEIR OWN ECONOMIES RIGHT NOW IN THIS

ECONOMIES RIGHT NOW IN THIS AREA.

AREA. IN THE EQUITY MARKETS, WE’RE NOW

IN THE EQUITY MARKETS, WE’RE NOW SEEING PEOPLE TRYING TO PRICE IN

SEEING PEOPLE TRYING TO PRICE IN BEHAVIOR BASED ON THE VIRUS.

BEHAVIOR BASED ON THE VIRUS. AND THEY’RE TRYING TO PRICE IN,

AND THEY’RE TRYING TO PRICE IN, WHAT IS A COMPANY GOING TO EARN

WHAT IS A COMPANY GOING TO EARN NEXT MONTH OR NEXT QUARTER OR

NEXT MONTH OR NEXT QUARTER OR THE QUARTER AFTER?

THE QUARTER AFTER? HOW LONG IS THIS GOING TO BE --

HOW LONG IS THIS GOING TO BE -- IS THIS ECONOMY GOING TO BE LIKE

IS THIS ECONOMY GOING TO BE LIKE THIS?

THIS? ARE PEOPLE GOING TO GO OUT AND

ARE PEOPLE GOING TO GO OUT AND SPEND AGAIN?

SPEND AGAIN? CAN PEOPLE GO OUT AND SPEND

CAN PEOPLE GO OUT AND SPEND AGAIN.

AGAIN. PEOPLE THAT WANT TO WORK, CAN

PEOPLE THAT WANT TO WORK, CAN THEY WORK?

THEY WORK? CAN THEY ACTUALLY BRING HOME A

CAN THEY ACTUALLY BRING HOME A PAYCHECK.

PAYCHECK. IF THEY CAN’T, IT IS GOING TO

IF THEY CAN’T, IT IS GOING TO HAVE A DIRECT IMPACT ON THE

HAVE A DIRECT IMPACT ON THE ECONOMY.

ECONOMY. >> THEN LET’S TALK ABOUT THE

>> THEN LET’S TALK ABOUT THE POLICIES THAT ARE BEING PUT IN

POLICIES THAT ARE BEING PUT IN PLACE.

PLACE. LAST WEEK WHEN THE FED CUT

LAST WEEK WHEN THE FED CUT RATES, AN EMERGENCY RATE CUT,

RATES, AN EMERGENCY RATE CUT, PEOPLE AREN’T GOING TO GO OUT

PEOPLE AREN’T GOING TO GO OUT AND START STARTING A BUSINESS OR

AND START STARTING A BUSINESS OR BUY A HOME AND SPEND WHEN ALL

BUY A HOME AND SPEND WHEN ALL THE HEALTH PROFESSIONALS AND

THE HEALTH PROFESSIONALS AND CORPORATE LEADERS ARE TELLING US

CORPORATE LEADERS ARE TELLING US TO HUNKER DOWN AND STAY HOME.

TO HUNKER DOWN AND STAY HOME. >> LOOK, THIS IS NOT A LIQUIDITY

>> LOOK, THIS IS NOT A LIQUIDITY CRISIS.

CRISIS. THIS IS NOT AN ’08 CRISIS.

THIS IS NOT AN ’08 CRISIS. WE HAVE PLENTY OF LIQUIDITY IN

WE HAVE PLENTY OF LIQUIDITY IN THE CRISIS.

THE CRISIS. >> WHAT DOES THAT MEAN?

>> WHAT DOES THAT MEAN? >> THERE IS NO LACK OF LIQUIDITY

>> THERE IS NO LACK OF LIQUIDITY IN THE FINANCIAL SYSTEM.

IN THE FINANCIAL SYSTEM. BANKS ARE AWASH WITH CASH.

BANKS ARE AWASH WITH CASH. THERE’S PEOPLE JUST TRYING TO

THERE’S PEOPLE JUST TRYING TO INVEST CASH OVERNIGHT, EVERY

INVEST CASH OVERNIGHT, EVERY NIGHT.

NIGHT. ONE THING ANDREW DIDN’T MENTION

ONE THING ANDREW DIDN’T MENTION IS WE HAVE A TEN-YEAR INTEREST

IS WE HAVE A TEN-YEAR INTEREST RATE IN THE UNITED STATES TODAY

RATE IN THE UNITED STATES TODAY BELOW 50 BASIS POINTS.

BELOW 50 BASIS POINTS. AROUND 44, 45 BASIS POINTS.

AROUND 44, 45 BASIS POINTS. THAT’S ALL-TIME HISTORIC LOWS.

THAT’S ALL-TIME HISTORIC LOWS. WE’RE NOT THERE BECAUSE PEOPLE

WE’RE NOT THERE BECAUSE PEOPLE WANT IT THERE.

WANT IT THERE. WE’RE THERE BECAUSE EVERYONE

WE’RE THERE BECAUSE EVERYONE WANTS TO INVEST THEIR MONEY IN

WANTS TO INVEST THEIR MONEY IN SAFETY AND SOUNDNESS.

SAFETY AND SOUNDNESS. MEANING THEY’RE WILLING TO TAKE

MEANING THEY’RE WILLING TO TAKE A MUCH LOWER RATE OF RETURN ON

A MUCH LOWER RATE OF RETURN ON THEIR MONEY TO MAKE SURE THEY

THEIR MONEY TO MAKE SURE THEY GET IT BACK.

GET IT BACK. SO PEOPLE ARE BUYING U.S.

SO PEOPLE ARE BUYING U.S. TREASURES AT LESS THAN A HALF A

TREASURES AT LESS THAN A HALF A PERCENT RETURN BECAUSE THAT’S

PERCENT RETURN BECAUSE THAT’S WHERE THEY FEEL SAFE AND SOUND.

WHERE THEY FEEL SAFE AND SOUND. SO THE SYSTEM THAT WE DEAL WITH,

SO THE SYSTEM THAT WE DEAL WITH, THE ECONOMIC SYSTEM, THE MARKET

THE ECONOMIC SYSTEM, THE MARKET SYSTEM, IS FLOODED WITH CASH

SYSTEM, IS FLOODED WITH CASH RIGHT NOW.

RIGHT NOW. PEOPLE PROBABLY HAVE MORE CASH

PEOPLE PROBABLY HAVE MORE CASH THAN THEY’VE HAD IN A LONG

THAN THEY’VE HAD IN A LONG PERIOD OF TIME BECAUSE THEY’RE

PERIOD OF TIME BECAUSE THEY’RE CONSUMING LESS.

CONSUMING LESS. PEOPLE ARE CHOOSING NOT TO

PEOPLE ARE CHOOSING NOT TO TRAVEL.

TRAVEL. YOU SEE IT IN THE AIRPORT.

YOU SEE IT IN THE AIRPORT. PEOPLE ARE CHOOSING NOT TO GO

PEOPLE ARE CHOOSING NOT TO GO OUT TO DINNER, NOT TO RIDE

OUT TO DINNER, NOT TO RIDE TAXIS, NOT TO RIDE UBERS AND GO

TAXIS, NOT TO RIDE UBERS AND GO OUT AND DO THE THINGS THEY’RE

OUT AND DO THE THINGS THEY’RE NORMALLY DOING IN THE ECONOMY.

NORMALLY DOING IN THE ECONOMY. WHEN THE FED CUTS INTEREST

WHEN THE FED CUTS INTEREST RATES, IT’S NOT GOING TO SPUR

RATES, IT’S NOT GOING TO SPUR ECONOMIC GROWTH.

ECONOMIC GROWTH. IT’S GOING TO MAKE MONEY

IT’S GOING TO MAKE MONEY CHEAPER.

CHEAPER. MONEY WAS ALREADY CHEAP AND

MONEY WAS ALREADY CHEAP AND AVAILABLE.

AVAILABLE. >> OKAY.

>> OKAY. >> THE MARKET HAD PRICED IT FOR

>> THE MARKET HAD PRICED IT FOR THEM.

THEM. >> ANDREW, WHAT IS THIS ABOUT?

>> ANDREW, WHAT IS THIS ABOUT? IS THIS ABOUT FEAR AND

IS THIS ABOUT FEAR AND TRANSPARENCY?

TRANSPARENCY? CNBC REPORTING RIGHT NOW THAT

CNBC REPORTING RIGHT NOW THAT TRADING IS HALTING.

TRADING IS HALTING. IF TWO WEEKS AGO THE PRESIDENT

IF TWO WEEKS AGO THE PRESIDENT WOULD HAVE SAID, LET’S PUT A

WOULD HAVE SAID, LET’S PUT A PAUSE ON THE IDEA OF ECONOMIC

PAUSE ON THE IDEA OF ECONOMIC GROWTH AND LET’S ADDRESS THIS

GROWTH AND LET’S ADDRESS THIS PUBLIC HEALTH CRISIS, WOULD WE