$11 Trillion Flowing Into World Financial System Means Jobs, Lots of Jobs!

Eleven Tril is the equivalent of 9.5 months of our Gross Domestic Product ($14.3 Tril a year), or 2 1/2 months of the world GDP! ($54 Tril). And while we are in the throws of a seemingly major recession, there will be a lot of jobs created.

Yes, $11 Tril has been or is planned to be injected mostly into the world banking system, starting with the Bear Stearns bailout in March, and more recently the $700 billion bailout bill passed by Congress. European central banks are contributing an estimated $2.8 Tril, and our own Federal Reserve some $5.6 Tril to offshore banks, mostly in “swaps” (our dollars for their currency) to unclog the world banking system which almost ground to a halt in early October. This will regenerate loaning ability, and letters and lines of credit. While Q4 might be the worst since 1980, this avalanche of money suggests a quick recovery starting in Q1 or Q2 of 2009.

A small percentage will go directly back to taxpayers in a second round of rebates, some to help 3 million subprime “victims” keep their homes. This has spawned a “cottage industry” of loan mitigation and modification services, sadly sometimes employing the same subprime brokers who orchestrated the crisis.

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Eleven trillion is a lot of money, and hundreds of thousands of jobs will be created, a lot of them in banks, regulatory authorities to monitor disbursements, and loan modification companies. Yes, many are being laid off, but many will find new jobs created by this massive flow of money.

My suggestion to fellow recruiters looking for new business? “Follow the money.”

Jonathan R. Hefferlin is managing director of MRI, based in Dana Point, California. He is a search consultant with expertise in construction and transportation. A former television commentator, he authored the book Making Inflation Pay.

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