Goldman Sachs CEO: ‘Companies Should Start Preparing for [Recession]’

ROSS SORKIN So when ░░░░░░░░ call you OK so ░░░░░░░░ s the next 18 ░░░░░░░░ look like From your ░░░░░░░░ the house view the ░░░░░░░░ Solomon view What does ░░░░░░░░ look like Are we ░░░░░░░░ a recession SOLOMON Well ░░░░░░░░ house view is slowing ░░░░░░░░ activity higher rates and ░░░░░░░░ a 30 percent chance ░░░░░░░░ recession as you go ░░░░░░░░ over the next 12 ░░░░░░░░ months What I would ░░░░░░░░ and that s that ░░░░░░░░ a research ROSS SORKIN ░░░░░░░░ SOLOMON You know a ░░░░░░░░ point of view What ░░░░░░░░ would say when I ░░░░░░░░ advising clients is we ░░░░░░░░ going to tighten economic ░░░░░░░░ it s going to ░░░░░░░░ an impact on a ░░░░░░░░ of things in your ░░░░░░░░ that are hard to ░░░░░░░░ You have to be ░░░░░░░░ about your risk appetite ░░░░░░░░ have to be thinking ░░░░░░░░ your planning you have ░░░░░░░░ think about the fact ░░░░░░░░ we probably at some ░░░░░░░░ that there s a ░░░░░░░░ chance at some point ░░░░░░░░ we have a recession ░░░░░░░░ we have you know ░░░░░░░░ very slow sluggish growth ░░░░░░░░ so start preparing for ░░░░░░░░ Start thinking about that ░░░░░░░░ doesn t mean that ░░░░░░░░ s definitely going to ░░░░░░░░ but certainly I think ░░░░░░░░ if you re running ░░░░░░░░ significant enterprise you have ░░░░░░░░ be looking through lens ░░░░░░░░ a little bit more ░░░░░░░░ right now than you ░░░░░░░░ have ROSS SORKIN Right ░░░░░░░░ been when we were ░░░░░░░░ here a year ago ░░░░░░░░ SORKIN How many calls ░░░░░░░░ you getting about M ░░░░░░░░ in this moment companies ░░░░░░░░ all of a sudden ░░░░░░░░ completely off the table ░░░░░░░░ might now be on ░░░░░░░░ table SOLOMON Well I ░░░░░░░░ consumer confidence and CEO ░░░░░░░░ always has an impact ░░░░░░░░ M A and so ░░░░░░░░ is no question with ░░░░░░░░ waning a little bit ░░░░░░░░ you re not seeing ░░░░░░░░ same velocity of activity ░░░░░░░░ we saw maybe 12 ░░░░░░░░ months ago However I ░░░░░░░░ say because the economic ░░░░░░░░ is changing significantly people ░░░░░░░░ thinking a lot about ░░░░░░░░ to best position themselves ░░░░░░░░ and there are a ░░░░░░░░ of companies that thought ░░░░░░░░ they were going to ░░░░░░░░ easy access to capital ░░░░░░░░ SORKIN Right SOLOMON that ░░░░░░░░ probably have a harder ░░░░░░░░ to raise the capital ░░░░░░░░ need to execute on ░░░░░░░░ plans So I would ░░░░░░░░ the dialogue level inside ░░░░░░░░ organization with companies large ░░░░░░░░ small is very very ░░░░░░░░