Goldman CEO Lloyd Blankfein: There are Reasons to be Optimistic
-- People should feel optimistic about the markets
-- Worst case scenarios about Europe is off the table and focus shifts to more manageable issues like growth in Europe.
-- With passage of time, deleveraging will unfold in Europe and growth will come back, so there is room for optimism in Europe.
-- On the US: We are in a much better position than Europe, with housing stabilizing, prices going up, energy situation good combined with low interest rates, makes the country's environment very attractive.
-- Even with the current improvements, a lot of money is still sitting in fixed income securities which are not generating much income, so when that money turns up into equity markets there is a good chance of markets being much higher from these levels.
-- Increasing interest rates are coming much sooner then expected.
-- On the fiscal debt: Will need to fix both taxes and spending pieces of the puzzle. He will be very disappointed if Congress does not do anything about spending cuts.
-- On Goldman Sachs and the blowout quarter: He doesn't think it was a blowout quarter. He is very optimistic about Goldman Sachs prospects. Every business at Goldman is linked to growth. People make acquisitions only when they are confident of the economic environment and growth and people only make risky investments when prospects are looking good. As the economy progresses and things are starting to grow again, he expects a lot of good results form Goldman Sachs.
Credit and Source: www.cnbc.com, CNBC
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