Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

General Public Doesn't Quite Understand Bond Market Risks

Interest-Rates / US Bonds Feb 12, 2013 - 10:51 AM GMT

By: Bloomberg

Interest-Rates

Goldman Sachs President and COO Gary Cohn spoke with Bloomberg Television's Stephanie Ruhle on "Market Makers" from Cleveland, OH today, one of the cities where Goldman provides education and funding for small business owners.

Cohn said that, "there is really only one way that interest rates can go over some period of time which is ultimately higher. I'm concerned that the general public does not quite understand the pricing of bonds and interest rates and the inverse correlation between the two."


Cohn on interest rate concerns and how Goldman Sachs is preparing:

"We have the natural concerns that everyone else has in the world. We have been in a 32-year bull market in bonds in the United States. Most of the major central banks around the world are in some type of zero interest rate policy or quantitative easing. This means to come to an end at some point. I am not predicting that it comes to an end anytime soon, but if you look at the normal progression of markets, there is only one way that interest rates can go over some period of time which is ultimately higher. I am concerned that the general public does not quite understand the pricing of bonds and interest rates and the inverse correlation between the two."

On the U.S. economy:

"My views haven't changed. When you look at interest rates and when you look at fundamental monetary policy you have to take a much broader macro view. It is hard to change your views very quickly. I was in Asia last week. Asia continues to perform well. I was in Indonesia, Hong Kong, Singapore. All things in Asia seem to be very well. That said, you still have an interesting situation in Japan, you have an interesting situation in Europe and you have an interesting situation in the United States. Ultimately, all of these situations are going to get reflected in some type of monetary or fiscal policy."

On Goldman's 10,000 Small Businesses initiative and why he is in Cleveland today:

"10,000 Small Businesses is one of two cornerstone projects that we at Goldman Sachs have. The first is 10,000 Women and the second is 10,000 Small Businesses. Each of them are $500 million dollar projects. We're here in Cleveland to celebrate the first graduation of our Cleveland class. This is not our first graduation. Cleveland is one in nine cities where we now have 10,000 Small Businesses programs going on. It is a program where we believe we can help drive the U.S. economy by educating small business owners around the world.

On the concerns of small business owners right now:

"I think small business owners, large business owners and medium business is owners all have the same concerns. It ultimately comes down to the economy. Small-business owners are usually in the customer service business. They need customers. They need their customers to be growing. They need the economy to be expanding. Obviously interest rates affect larger businesses more than small businesses. Another issue is that small businesses have less access to capital. That's something that we are also dealing with in our 10,000 Small Businesses program, where our over $300 million of our $500 million contribution is access to capital for these small business owners."

On whether small business owners are going to put the capital to work:

"Unlike the big businesses, small business owners, their ability to borrow money is very difficult. For them to get access to money they need to have a very distinct need for it. When we give out capital through our CDFI programs here in Cleveland and other places, the CDFIs go through excruciating detail to make sure the small businesses need the money, but more importantly will put it to work right away and help grow jobs and help grow the economy."

On why small business CEOs are more likely to hire people and grow than a Fortune 500 CEO:

"In some respect, the small business is very micro. They know exactly what is going on in the community and its neighborhood. It has its finger on the pulse. It does not have as much risk for the geo-political situation, the political situation. It is much more interested in what is happening locally in its direct community. The small businesses we have represented here today in Cleveland--we have 36 different businesses--each of them is quite micro in what they need and what part of the economy they service and they have a very real time feel of what's going on in their business."

On whether small businesses--as opposed to large corporations--have an understanding of places where they need to grow:

"We have been at this for about two years now. We have about 1300 graduates in our small business program. We have real data that over 70% of these small businesses after graduating from our program have actually grown revenue. 50% have increased headcount by going out and hiring people. We do have real data that shows that these small businesses with their concepts and ideas and our education and our mentorship can really go out and grow their businesses."

On what kind of women representation there is:

"Great question. Thank you. Over 50% of our small businesses are women owned businesses. Our minority population is quite strong as well. We have about 30+% of our businesses that are minority-owned."

On whether the 10,000 Small Businesses project is a hedging strategy for Goldman Sachs:

"That is not a hedging strategy. The best thing we can do for our business and for the U.S. economy is to help it grow. Growth of the economy is the fundamental driver of our business and the well-being of the country. Investing in these small businesses is our contribution to helping the U.S. economy grow."

bloomberg.com

Copyright © 2013 Bloomberg - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Bloomberg Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in