President meets with business leaders about fix for economy
Goldman Sachs CEO Lloyd Blankfein weighs in
- Duration 6:04
- Date Feb 5, 2013
Goldman Sachs CEO Lloyd Blankfein weighs in
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And President Obama just wrapping up a big time meeting with leaders from some of the nation's biggest companies on the table everything from immigration to taxes and spending.
Goldman Sachs Chief Executive Officer Lloyd Blankfein was that and he joins us now -- Mike -- bulk of the program.
Thank you -- Vote this afternoon the president.
Went for another quick fix he does not want the major spending cuts that sequestration would bring on March the first he wants a quick fix what's your rating on act.
I think it's -- I think it's quite done quite appropriate to try to find some.
Reasoned alternative to the it kind of doomsday backstop of the sequestration I think it's a good idea to be searching for some solution other than the automatic spending cuts it -- it would include this quick fix would include more taxes on wealthy people on top of the highest taxes on the rich we already got on generally -- -- What you stand on more taxes on the rich.
Well I think at this point.
The budget is is is moving out of control at this point largely because the acceleration of tax expenditures.
I think -- predominately at this point we're looking for -- some cutting back on the expenditure side.
And I think that you know that's gonna have to be a focus -- will get it.
I think we need to get it so I think we well and I think the president has said and I think I'm implications are there that -- Previous offers are on the table I haven't I haven't really seen in detail what they are for presumably the negotiating parties know what they are.
So it's still a it's still a dance where everyone's waiting for the other side to take its turn.
But I'm sure -- at each side expects to give a little bit more.
I won last year about reforming Social Security entitlements.
You wrote in an all fed did not he was November the twelfth think it was in 2012 he said look we gotta do this we've got to reform and -- -- -- with the rain and it.
The president doesn't seem willing to do that he's -- -- rating of the president's policy on Social Security.
I don't mean what he's willing to do weren't willing to do what I'm talking about -- the mathematics of it which is kind of immutable at this point.
It won't be a Social Security.
If if there were if the incoming Social Security.
Doesn't -- the expenditures for the Social Security program that's just mathematics but it is just seems like politics gets in the way.
That the president wants to consistently raise taxes on the rich.
He wants to cut spending but not by very much he's ignoring the -- and he's not saying anything really about long term Social Security or Medicare reform.
What do you make of that overall policy.
Well I think I don't think that's policy I think that's politics.
The fact of the matter is.
Each of these sides in this debate can add and subtracting -- divide the same way I can it's just a matter of.
Getting and getting it done.
Nobody comes to me I mean I'm probably used to deal making on Wall Street I'm not dot com that's the minor leagues.
Compared to Washington I think each side knows that the lines are diverging forever between the revenue that the government is taking in.
And the expenses that the government in -- and particularly because of geometrically progressing.
Entitlement spending and those lines have to be made to converge.
Both sides have given a little bit at this point a little more work has to be done.
A guy you'll you'll probably but the most powerful investment bank is in the United States if not the most powerful -- the whole.
What's you'll reading on the state about finances the president says we're doing just fine everything's okay the recovery is on track.
Does that -- -- you'll read.
I think -- a recovery is on track.
It's not strong enough -- -- -- it's not steep enough but I think it's undeniable at this point that the economy is moving forward.
We've seen housing prices bottom out we've seen growth unemployment is going up we'd like -- employment is going up we'd like it to be faster.
But it's never left going up.
And I think a lot of the economic numbers are if anything surprising -- -- to the high side there are some wings in front of us it's not smooth.
But I think it's undeniable that we are entering a growth -- at this point.
There's some worry could back -- and I think that's why the Central Bank is keeping its extraordinary measures are going which I.
Frankly approved by the even though it's risky at this point but nevertheless I think at this point the conclusion is it's going forward but we can't we can't be complacent.
Earlier today the Justice Department filed suit against civil suit against -- -- -- the rating agency putting some of the blame for the crash of 08 -- them.
What -- do you feel that in some ways the administration is making Wall Street developed.
The only villain in the crash of 08 and you are right in the middle -- -- it -- do you still do you think you'll still looked -- as a villain.
There are a lot of legacy issues that come after the crisis the trauma was very severe it wasn't that long ago and people want to make sure it doesn't get repeated.
I think everybody has done a very good job.
All of pivoting and looking forward trying to do the things that add -- that create growth that create jobs and going forward.
We're not getting away from dealing with the legacy issues.
We had some legacy issues and have some legacy issues to deal with.
The rating agency -- does even the our government to some extent and legislators and regulators have some legacy issues.
They have to deal with.
Both to deal with the pass and also to make sure that we don't repeat that.
Pass in the future so we're dealing with but I would say the most important thing.
Is not to spend 90% of the mind -- now on those legacy issues but 90%.
Trying to bring this country forward and create.
A better economy and more jobs but we're not gonna run so fast -- to escape the legacy issues that we all have to do it.
But black -- CEO of Goldman Sachs we really appreciate you being with us today after a very busy day on -- -- thanks for joining us.
Thank you very much -- -- so.