Goldman Sachs’ Lloyd Blankfein Market Misunderstood Bernanke’s Intentions [VIDEO]

Goldman Sachs' Lloyd Blankfein Market Misunderstood Bernanke's Intentions [VIDEO]

Goldman Sachs “10,000 Small Businesses” initiative has joined with New Orleans. Goldman Sachs Chairman and CEO Lloyd Blankfein, and Mayor Mitch Landrieu (D-New Orleans), discuss the work they’re doing together, the Fed’s impact on the market and the current economic environment.

Lloyd Blankfein video interview and transcript embedded below.


goldman sachs up solidly today ceo lloyd blankfein. a good chunk of the business initiative goes to the city of new orleans. of course the financial industry goldman chairman and ceo lloyd blankfein along with new orleans mayor. so to the small business initiative in a moment. but first, lloyd, let me start by getting your take on what is going on in terms of the recent moves and federal reserve. do you think the market initially misunderstood what the fed is — all of a sudden we have nervousness, then three days of rally or don’t pay attention to the near term moves. the mark set big. and not homeogenius. bernanke said we will be data reflective but it is based on growth specifically then well ease ourselves, taper ourselves off quantitative easing. he said potentially by the end of the year. not necessarily if the data doesn’t support it. but otherwise — and that’s what he said. the market of course, took this as, oh, my god, the first moment. and it would be an avalanche. and that doesn’t have to necessarily be case. i want to ask you about another mover. and that is gold hitting a fresh three-year low. i know your analyst at goldman is one of the analyst out there talking abou gold and how we may very well see that continue. any thoughts on what the — do you see clients wanting to be in gold? do you see clients say, this is a hedge. not a commodity? any thoughts on what is going on there. i think gold has its moment when people lose all confidence and currencies and other places to store value when interest rates are low so gold is very cheap to hold. compared to where they have alternatives. as people get more confidence in the economy than in the currencies and as rates ral rally, it is not a very favorable market for gold. that is what we saw today certainly. i want to ask you how important this is for new orleans and incredibly important mr. mayor, but when you join the city of new orleans it bring $20 million in small business loan capital and network to small business owners in the city, this has to be something that moves the needle. huge. and i want to thank lloyd goldfein to try this product. new orleans is probably the country’s most immediate laboratory for innovation and change. one thing we have to do is create jobs and do it fast. there has to be a new relationship between public and private sector. and goldman sachs and 10,000 small business initiative fits perfectly. what do they tell you? we need more training. we need to build capacity, then access to capital. so the small business program with goldman sachs does all three of those. we bring in a quick executive mba program. now we have six individuals that had skin in the game. they had been in business for two years. when they get out they have access to $20 million in capital. so now they are a good credit risk. each one of these small businesses has six or seven jobs then it helps a city like new orleans who has below average employment rate. new orleans is a case, everybody’s heart was tugged when we saw images of post katrina in new orleans. it is a great city. also we are doing this in about a dozen cities. we look foinfrastructure. and we are taking people who are already successful small business people and giving them, as the mayor described, mini mba program. training. business planning. mentors. and at the end, give themccess to capital. and in connection with this, we need an infrastructure to help deliver those services and elements. the mayoras done a terrific job. also work through other partners including community colleges that remember the program. and we have a great partner in delgado in new orleans. as we have in a dozen other cities in america. that’s most important, right? education. a lot of companies, small companies, they can’t find the skill set required to actually make the hire. it has been an interesting component because it has everything. before, folks would say, i don’t have access to capital. there are no jobs, how will people give me something. now what lloyd said, they are not just giving money away, they are identifying people who have taken risk. . at least for two years. then they get trained. sit in a room with each other. then sit in a room with experts to get knowledge about how to grow. then when they get out, take the risk and borrow money. each one of theferent component are making them better small business people and evidence is reflecting that each one of the groups is sometimes doubling the amount of money that they make in a year. adding jobs, just as small businesses do. you can hit your numbers pretty good. it is not just about economic development. encouraging people to come in, but growth. it comes from small businesses and hand-to-hand combat. get an idea of who these people are. small business. caterer. security service. it may be a family business that’s gone on for three generations. ten employees. they don’t know what to commit to. and it doesn’t take a lot. if you’re in the catering business, do you pay for the freezer? how many years, how many months does it take to you earn that money back? good investment or poor investment? they stay prosen. they don’t do anything. they don’t have tools for analyzing. don’t have negotiation skills. accounting skills. but smart hugely ambitious and take people who are again already successful at a certain level. they dedicate week ends for months. they do this over their week ends and show commitment. we have 99% graduation rate. so once people start, they stay in it. and we teach them, accounting, business planning. analysis. everyone’s favorite course is negotiation. and network because they transact with each other. as the mayor said, we measure the heck out of this. so when it is done, we don’t just pat ourselves on the back. we make sure revenue is growing and look at what their hiring affect is. and most of the people hire new workers. what is your work, goldman’s work, in all these