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Goldman's Blankfein: This market hard to figure out

Goldman Sachs Chairman and CEO Lloyd Blankfein told CNBC on Friday the financial markets are now hard to read.

He used the trading activity of the past month to make his case for why stock volatility is probably back for the foreseeable future.

"When sentiment shifts, it erases your memory. Nobody can remember thinking the world was never going to be volatile again," he said in a "Squawk Box" interview from the World Economic Forum in Davos, Switzerland. "Things can change on a dime."

He cited Thursday's announcement by the European Central Bank of its $1.2 trillion bond buying program to stimulate the euro zone. "Europe is opting for growth over austerity," he said.

Blankfein said he hoped he would have had the courage that ECB President Mario Draghi exhibited in deciding to embark on a massive asset purchase plan.

"Obviously, he does this against the backdrop of a lot of controversy," the Goldman boss said. "[Draghi] sets himself up for a lot of second-guessing down the road."

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