BUSINESS
06/12/2012 12:33 pm ET

Lloyd Blankfein: Businesses Waiting Until After Election To Make Moves

The economy isn't behaving the way it should be and politics is to blame, according to Goldman Sachs CEO Lloyd Blankfein.

"The economy is not horrible; it’s just not growing the way it should," Blankfein said on MSNBC's Morning Joe on Tuesday.

Blankfein said though the U.S. economy has been worse off before, "we're in a tough position for the next two, three, four, five months."

"There’s just a lot of uncertainty, and people are looking at the election going forward, whichever side you’re on, and saying, I just don’t know what I’m going to have...so I think I’ll wait," Blankfein said on Morning Joe.

The reason may be unclear, but Blankfein is right to note that corporate chiefs are nervous. Just 42 percent of U.S. CEOs expect to hire more American workers in the next six months, according to a survey released in March by Business Roundtable.

Billionaire investor Warren Buffett, sitting next to Blankfein on Morning Joe, offered another reason for the sluggish economy, noting that it will only improve when more young people start forming new households.

"We just have too many houses around," Buffett said. "Fortunately we have household formations in this country, and it will eat it up, and it’s been eating it up, but that’s when things will speed up: is when we really get household formation and housing in...balance."

Buffett invested $5 billion in Goldman Sachs during the 2008 financial crisis in part to try to calm the markets.

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