$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.


2 Comments on “$11 Trillion Flowing Into World Financial System Means Jobs, Lots of Jobs!

  1. Max –

    I am a financial news junkie. These figures I have been collecting are not complete. Some listed may not be spent or are included in subjequent programs. Some are estimates. As near as I can figure, starting with the Bear Stearns bailout in March, the Fed(eral Reserve) announced:

    $ 29 Bil to facilitate the Bear Stearns takeover,
    $ 200 Bil to bolster the Federal Home Bank
    $ 200 Bil Swaps (possibly incl. in the $5 Tril below)
    $ 600 Bil. thru August. The Fed added
    $ 545 Bil for domestic & int’l short term borrowing,
    $ 150 Bil in AIG bailout/ ($40 Bil after I wrote piece)
    $ 25 Bil to auto industry (prior to current $25 Bil plan)
    $ 700 Bil Bailout
    $ 150 Bil in ‘goodies’ to get it passed
    $ 200 Bil + in 2 more taxpayer rebate plans
    $ 400 Bil to augment bailout/or 3 mil. sub prime prob.loans
    $2,800 Bil. estimate EU bailout.
    $5,000 Bil. estimated total Fed & Central Bank swaps
    $ 586 Bil. Chinest bailout (also after I wrote the piece).

    EU bailout may not inlude some $200 Bil in bank aid so far,
    or FDIC help here; the above doesn’t include our $640 Bil regular budget, $700 Bil in bank writeoffs so far I think in the US only, Russia’s $30 Bil into her stock market (that dropped 73% since May 12) and much more, India or any of 200 other countries.

    I need more fingers, or take off my shoes as some pundits feels it could hit $20 Tril. I for one can’t even imagine these levels of intervention. We are indeed witnessing history here.


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