Lloyd Blankfein wearing a suit and tie: Brendan McDermid/Reuters


© Brendan McDermid/Reuters
Brendan McDermid/Reuters

  • 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.”

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“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 very little money.”

The banking titan also referred to the SPAC market as a sign that the market is taking on much speculation lately. In this year alone, about 110 blank-check firms led by notable investors like Chamath Palihapitiya and Bill Ackman have raised over $40 billion on public markets. That’s over $26 billion more than what last year’s SPACs raised.

Read more: Citi’s US equities chief warns of an ‘extreme peak’ in earnings revisions heading into the crucial reporting season — and explains why it makes stocks vulnerable to a pullback in the weeks ahead

“Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan,” Blankfein said. 

The banking titan can be added to the growing list of investors voicing concerns about the speculative nature in markets. Last week, venture capitalist Bill Gurley said the stock market reminded

Oct. 1 (UPI) — Boeing said Thursday it will consolidate production for its 787 airliner to a single plant in South Carolina, a cost-cutting measure to mitigate losses brought on by the COVID-19 pandemic.

The move will end the model’s production at Boeing’s Everett, Wash., facility sometime next year.

The announcement is a double blow for the Everett facility, which famously assembled 747 airliners for decades. Boeing has said it will end 747 production in 2022.

“The Boeing 787 is a tremendous success it is today thanks to our great teammates in Everett,” Stan Deal, president and CEO of Boeing Commercial Airplanes, said in a statement. “They helped give birth to an airplane that changed how airlines and passengers want to fly.

“As our customers manage through the unprecedented global pandemic, to ensure the long-term success of the 787 program, we are consolidating 787 production in South Carolina.”

The Everett facility, according to Deal, will now focus on making Boeing’s 737, 767 and 777 models.

The South Carolina facility started assembling 787-8 and 787-9 airplanes in 2010, three years after the Everett plant had begun. The site in North Charleston can also build the larger 787-10 model, Boeing said, something the Everett plant is not capable of.

“We recognize that production decisions can impact our teammates, industry and our community partners,” Deal added. “We extensively evaluated every aspect of the program and engaged with our stakeholders on how we can best partner moving forward. These efforts will further refine 787 production and enhance the airplane’s value proposition.”

Boeing said an in-depth study on 787 production found the consolidation will allow it to accelerate improvements and target investments.

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