Best of the Week
Most Popular
1.Stock Market in DANGER of Strangling the Bears to Death - Nadeem_Walayat
2. Germany Pivoting East, Exit US Dollar, Enter Gold Standard - Jim_Willie_CB
3.Flight MH17 – Kiev Flash Mob's Last False Flag? - Andrew_McKillop
4.Stock Market Crash Nightmare! - Nadeem_Walayat
5.Gold - The Million DOLLAR Question... - Rambus_Chartology
6.Gold And Silver – BRICS And Germany Will Pave The Way - Michael_Noonan
7.The Jewish Selfish Gene, People Chosen by God, Everyone Else is Goyim to Kill - Nadeem_Walayat
8.The Israeli Promised Land Dream - The Criminal Roadmap Towards “Greater Israel”? - Felicity Arbuthnot
9.Which Way is Inflation Blowing? Watch Commodities - Gary_Dorsch
10.U.S. Economy Quarterly Review and Implications for 2014-2015 - Lacy Hunt
Last 5 days
Gold’s Seasonal Sweet Spot - Strongest Months Are August, September, November And January - 1st Aug 14 - GoldCore
Flagrant Rush To War In The Ukraine Crisis - 1st Aug 14
What Russian Sanctions Mean for Your Money - 1st Aug 14
The West's Reckless Rush Towards War with Russia - 1st Aug 14
Gold Price Advance Capped by the Dead Cat Dollar’s Recovery - 1st Aug 14
Big Banks Shift to Lower Gear Banking Operations - 1st Aug 14
Africa: New Land of Investor Opportunity? Pointing to the Positives - 1st Aug 14
Turning a Clinical Eye on Biotech Stocks with High Potential Investor Reward - 1st Aug 14
Gaza Death Cloud Hangs Over Sheffield Eid Festival 2014 at Millhouses Park - 1st Aug 14
Israels Final Solution of Turning Gaza Concentration Camp into a Grave Yard - 31st July 14
US Failure: Unintended Consequence - 31st July 14
Stock Market Breakdown! - 31st July 14
Echoes Of The Great War – Only An Echo In The Elite Mind - 31st July 14
This is Bad News for U.S. Economy and Stock Markets - 31st July 14
The Important Impact of This “Secret” Gold Agreement - 31st July 14
The Something For Nothing Society Death Spiral - 31st July 14
The Social Memory Dump, Shredding Society - 31st July 14
How Safe Are Unallocated Gold Bullion Accounts? - 31st July 14
USDJPY Big Bear Market - 31st July 14
No More School in Gaza Because All the Children are Dead Chant Israel's Jewish Fundementalists - 31st July 14
The Iron Dome Inside The Heads of Israel’s Leaders - 31st July 14
You Know a Politician or Talking Head is Clueless When….. - 31st July 14
Don't Get Married to Your Gold Stocks—It's a Performance-Based Relationship - 31st July 14
Stock Market Parabolic Collapse - Sowing the Seeds of the Next Depression - 30th July 14
How to Profit from the Russia Ukraine Conflict - 30th July 14
Greenspan: U.S. Economy Running Out of Buffer; Stock Market to See Significant Correction - 30th July 14
Rogue States And Loony Tunes - 30th July 14
Anne Elk’s Theory On Brontosauruses - 30th July 14
Our Totalitarian Future - Totalitarianism NOW! - 30th July 14
Stocks Bear Market Formation Revealed - 30th July 14
We Just Found “The Future” - 30th July 14
What the “Steak Bandit” Says About Asset Values - 30th July 14
Designer War By Default - Seven Types of Elite Madness - 30th July 14
Death of the U.S. Dollar? Gold an Inflation Hedge? Really? - 29th July 14
We’re Ready to Profit in the Coming Gold Price Correction—Are You? - 29th July 14
Their Economy Will Collapse, Including Ours - 29th July 14
Silver Prices – Megaphone Patterns - 29th July 14
Real U.S. Interest Rates - Fed Exit a Blue Pill? - 29th July 14
Why Israel Should NOT Exist, Just Like Any Other Rogue State - 29th July 14
Gold Still Looking Good - 29th July 14
Silver Price Set To Star - 29th July 14
Our Population Growth Totalitarian Future - 29th July 14
World War 1 Cause and Consequences - The Planned Destruction of Christendom - 29th July 14
Will Crashing Commodities Crash the Stock Market? - 29th July 14
Ukraine MH17 - Washington Thinks Americans Are Fools - 29th July 14
Stock Market Bubble Warning - 29th July 14
Gold Price and U.S. Dollar’s July Rally - 28th July 14
Second Quarter Corporate Earnings: Marching Toward a Strong Economic Recovery - 28th July 14
Time to Put a New Economic Tool in the Box - 28th July 14
Mossad in Gaza, Ukraine and the Cult Of The All-Powerful Elite - 28th July 14
Elliott Wave Gold Price Projection Since 1970 - 28th July 14
Investors Remain Uncertain As Stock Fluctuate Near Long-Term Highs - Will The Uptrend Extend? - 28th July 14
The Mass Psychology Of Decline - 28th July 14
Will the US Destroy the World? - Don’t Expect to Live Much Longer - 28th July 14
GDM and GDXJ Gold Stocks In-depth Look - 28th July 14
Stock Market One FINAL High? - 28th July 14
What It Means - Paradigm Collapse And Culture Crisis - 27th July 14
Wall Street Shadow Banking: You Can’t Taper a Ponzi Scheme: “Time to Reboot” - 27th July 14
6 Tips for Picking Winning Gold Mining Stocks - 27th July 14
Israel's War on Children, Exterminating the Palestinians Future - 27th July 14
Guilt By Insinuation - How American Propaganda Works - 26th July 14
Surprise Nuclear Attack On Russia To Liberate Ukraine - 26th July 14
Use "Magic" Of Gold/Silver Ratio To Greatly Increase Your Physical Holdings - 26th July 14
Derivatives Market Species Origins - Abuse, Props and Risks - 26th July 14
Stock Market Manipulation and Technical Analysis - 26th July 14
China’s Stock Market Finally Looks Like A Buy - 26th July 14
Ed Milliband Fears Israel Jewish Fundamentalist Gaza War Massacres Backlash - 26th July 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

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

© 2005-2014 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

Free Report - Financial Markets 2014