- Goldman Sachs’ former CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money is clearly creating bubble elements in the markets.”
- The banking titan blamed low interest rates for creating free money for large investors.
- Blankfein also cited speculation in the growing SPAC market: “Look at SPACs and how much money is available on the basis of somebody’s reputation as opposed to a business plan.”
Former Goldman Sachs CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money” due to low interest rates is “clearly creating bubble elements in the markets.”
“Given that money is kind of free, it presumably is not being allocated in a disciplined way, and so there are bubble elements to this,” Blankfein said. “Look at the credit market — people are lending to what historically would have been weak credits for