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Explaining Southern California's economy

Goldman CEO Blankfein warns against risk of good times

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You heard it here first, folks! Well, actually, you heard it from Bloomberg (and I did via Naked Capitalism). The news service did a sit-down with Goldman Sachs CEO Lloyd Blankfein in which the Vampire Squid King delved into Goldman's various businesses and potential conflicts, in the aftermath of Greg Smith's notorious "Muppets" op-ed in the New York Times. 

(By the way, he thinks the whole "Vampire Squid" thing is hyperbole. That awkwardly suggests that while Goldman doesn't deserve to be called a Vampire Squid — in Matt Taibbi's infamous phrasing — it could perhaps be compared to a lesser cephalopod, perhaps a cuttlefish or adolescent octopus.)

Stay tuned until the end of the clip (see below), when Lloyd smartly notes that there's a disconnect between gloomy economists and more optimistic market people, such as...Lloyd Blankfein! He wryly asks us to look past the pundits who paint gloom-and-doom scenarios when, in fact, 90 percent of the time the situation actually improves. Then he suggests that we avoid getting distracted by the risk of things going wrong and focus on the risk of things...going right!

As he says, he's in the "risk management business." There are two sides to that coin!

Oh, and besides being just a crazy dreamer, he's bullish on tech. He thinks maybe we should add a letter to BRIC — which stands for "Brazil, Russia, India, China," the four horsemen of emerging global economic growth. Blankfein says we could make it BRICS — with the S for "Silicon Valley."

Follow Matthew DeBord and the DeBord Report on Twitter.

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