Goldman Sachs CEO Lloyd Blankfein described President Barack Obama's plan for Washington to reach an agreement on the "fiscal cliff" as detailed and "very credible." However, he cautioned that marginal income tax rates may have to rise to seal a deal.
In an interview with CNBC after meetings between the president and several CEOs, Blankfein said, of course, it's hard to tell if a deal will be reached but "if I were involved in a negotiation like this, and everybody was purporting to be where they are, I would say that an agreement was reachable."
Blankfein said he thought concessions on both the revenue and entitlement sides would be necessary...
“I’m certainly not insisting, I don’t even desire higher rates," he said. "I think they will be a drag if revenue goes up and rates goes up. But I think they will be a drag on the American economy if our budget deficit widens out forever, if we’re irresponsible and if government doesn’t work."
When left with these "poor" choices, Blankfein said the compromise has to be in the middle and both sides have to give.