Steve Schwarzman sat down with CNBC this morning and talked about the tax deal, quantative easing, private equity and his predictions for 2011.
The Blackstone CEO seems optimistic about the year ahead and particularly bullish on property.
“The economy really has pretty decent momentum… We can see this through most of our portfolio companies,” he said, adding that he believes that the tax deal will add 0.5 to 1% to economic growth.
Plus the compromise shows that the corporate world and the government can “do business together.”
He also said thinks QE will be needed less as the economy improves.
“I think you’re going to have more people with more money. Without taxes going up you’re going up you’ve got a variety of different incentives like cutting payroll taxes; there are other incentives in this package. I think economy will respond positively to that.”
And when asked what he sees onthe horizon:
“I think that one of the interesting things is going to be the real estate business. In the commercial area we’re seeing signs of a pick-up… Theres going to be a lot of maturities coming due, some of which will present real opportunities.”
He mentioned the retail and mall business; said office buildings do best in locations on water; and hotels “will be a surprise on the upside.”
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