I have been a recruiter for 11 years now and I think this is one of the craziest weeks I have ever seen in my opinion. The drama of layoffs, a leading attorney arrested for possible embezzlement and impersonation, holiday parties cancelled, bonuses cancelled--the news just keeps getting worse and worse. Law schools are also starting to report massively reduced hiring of their students--even the best law schools.
What is going on in the legal field?
I have a lot of opinions about that; however, the short answer is that a lot of stuff is going on and it is out of control. For more than a couple of decades the United States has benefited from a virtual monopoly in many fields. In finance, telecommunication, computers and other fields the United States has been a leader and this has created a great deal of wealth in the United States. What we are now facing, in my opinion, is a "perfect storm" of sorts.
The issues, as I see it, are two fold. Firstly, there are not a lot of new innovations in the pipeline that are driving investment and enthusiasm in the markets. Secondly, the ability of the financial markets to stimulate the economy has run its course, for the time being.
Innovation Has Largely Slowed Down
In 2000 and 2001 when there was a recession this was largely the result of the fact that a great deal of irrational investment had flowed into the Internet and cell phones. People saw the incredible value that these were bringing to the world, how they would change commerce, how we invested in commerce, and how we poured investment into them. When people realized much of this investment was misplaced and overly exuberant, a lot of the money that was flowing into the market was rapidly pulled back. Eventually, money started flowing back starting in 2002 and the economy recovered.
The issue we are facing now, however, is that all of this new technology has largely been adopted by most people so there are few opportunities around the United States for companies to rapidly expand this technology. Most people now use cell phones. Most people now have computers and computers are lasting longer. In addition, as computers spread around the United States this created many productivity enhancements inside companies. Documents could be processed faster and this created many opportunities.
The fact that innovation and productivity enhancements have slowed down so much is a huge problem. This is a very serious concern. The fact that there is nothing in the pipeline right now makes me very nervous indeed. While the prospect of new forms of energy is something that is in the pipeline, this is not necessarily something that is booming. It appears, however, to hold promise for propping up the economy the way the Internet and telecommunications and productivity enhancements from computers did.
As these new technologies fanned out across the world and America they created massive amounts of legal work here. Practice areas like intellectual property have thrived. Corporate transactional work thrived as companies grew and issued stock and often combined. All of what occurred with these companies generated by new technology, computers and the productivity enhancements served to create a massive amount of legal work.
The Ability of the Financial Markets to Stimulate the Economy Has Run its Course for Now.
After September 11, 2001, the Federal Reserve starting slashing interest rates like crazy. This started making housing more affordable for everyone because of the fact that people could afford more "house" for less payment. This also stimulated a great deal of lending to corporations, private equity activity and more.
On a more sophisticated financial side, another thing happened at the same time. It was the boom of the securities market. What was happening was that mortgages that were being issued were being packaged up and sold as groups of mortgages. Because interest rates were going down so fast, people could afford more "house" and prices of real estate appreciated rapidly. Very few of these mortgages were being foreclosed upon because if someone was not able to make their payments they were simply selling their house because it was most often worth much more than they had paid. Because so few mortgages were defaulting, the demand for these securities became overwhelming and even the riskiest securities instruments were very valuable.
I was involved in this to some extent because I also ran a student loan business at the time. The loans that this company was doing were also packaged and made into securities. I remember last year travelling to London to meet with investors in these securities. Most of the people purchasing these securities were from overseas. Places like Luxembourg, for example. They all lost a lot of money as well. Now all of these people who lost so much money are unlikely to buy stuff from American financial institutions like they did before for some time into the future.
As everyone knows, this whole "house of cards" started crashing down when interest rates started to rise. Once this occurred, banks were left with toxic securities that lost massive amount of value. The financial crisis as we know it had begun.
The issue with this, and what has confused politicians so much, is that they do not have a tool to do this again. There is no tool that I am aware of (or that politicians are aware of) that can be used to prop up the economy again.
Real estate was a booming practice area for attorneys for many years during this time. No more. In addition, the work created in securities was also plentiful. This work has also gone away. The field has been literally leveled.
None of this takes into account all of the money that was coming into the financial system from people refinancing buildings and homes. In addition, because borrowing costs were so low for a long time private equity companies were putting incredible amounts of money into companies as well. All of the money coming into the financial system was also generating a great deal of work for attorneys.
The legal world always does fine and there are always bright spots even when things are collapsing. But what we saw this week was more of an example of what is coming due to all of this. In addition, on Friday of this week the government released new payroll numbers showing that the job market has lost more jobs than any time in the past 35 years. Things are getting really, really bad and the problem is, there's not much that can be done right now.
Click here to contact HarrisonAbout Harrison Barnes
Harrison Barnes is a prominent figure in the legal placement industry, known for his expertise in attorney placements and his extensive knowledge of the legal profession.
With over 25 years of experience, he has established himself as a leading voice in the field and has helped thousands of lawyers and law students find their ideal career paths.
Barnes is a former federal law clerk and associate at Quinn Emanuel and a graduate of the University of Chicago College and the University of Virginia Law School. He was a Rhodes Scholar Finalist at the University of Chicago and a member of the University of Virginia Law Review. Early in his legal career, he enrolled in Stanford Business School but dropped out because he missed legal recruiting too much.
Barnes' approach to the legal industry is rooted in his commitment to helping lawyers achieve their full potential. He believes that the key to success in the legal profession is to be proactive, persistent, and disciplined in one's approach to work and life. He encourages lawyers to take ownership of their careers and to focus on developing their skills and expertise in a way that aligns with their passions and interests.
One of how Barnes provides support to lawyers is through his writing. On his blog, HarrisonBarnes.com, and BCGSearch.com, he regularly shares his insights and advice on a range of topics related to the legal profession. Through his writing, he aims to empower lawyers to control their careers and make informed decisions about their professional development.
One of Barnes's fundamental philosophies in his writing is the importance of networking. He believes that networking is a critical component of career success and that it is essential for lawyers to establish relationships with others in their field. He encourages lawyers to attend events, join organizations, and connect with others in the legal community to build their professional networks.
Another central theme in Barnes' writing is the importance of personal and professional development. He believes that lawyers should continuously strive to improve themselves and develop their skills to succeed in their careers. He encourages lawyers to pursue ongoing education and training actively, read widely, and seek new opportunities for growth and development.
In addition to his work in the legal industry, Barnes is also a fitness and lifestyle enthusiast. He sees fitness and wellness as integral to his personal and professional development and encourages others to adopt a similar mindset. He starts his day at 4:00 am and dedicates several daily hours to running, weightlifting, and pursuing spiritual disciplines.
Finally, Barnes is a strong advocate for community service and giving back. He volunteers for the University of Chicago, where he is the former area chair of Los Angeles for the University of Chicago Admissions Office. He also serves as the President of the Young Presidents Organization's Century City Los Angeles Chapter, where he works to support and connect young business leaders.
In conclusion, Harrison Barnes is a visionary legal industry leader committed to helping lawyers achieve their full potential. Through his work at BCG Attorney Search, writing, and community involvement, he empowers lawyers to take control of their careers, develop their skills continuously, and lead fulfilling and successful lives. His philosophy of being proactive, persistent, and disciplined, combined with his focus on personal and professional development, makes him a valuable resource for anyone looking to succeed in the legal profession.
About BCG Attorney Search
BCG Attorney Search matches attorneys and law firms with unparalleled expertise and drive, while achieving results. Known globally for its success in locating and placing attorneys in law firms of all sizes, BCG Attorney Search has placed thousands of attorneys in law firms in thousands of different law firms around the country. Unlike other legal placement firms, BCG Attorney Search brings massive resources of over 150 employees to its placement efforts locating positions and opportunities its competitors simply cannot. Every legal recruiter at BCG Attorney Search is a former successful attorney who attended a top law school, worked in top law firms and brought massive drive and commitment to their work. BCG Attorney Search legal recruiters take your legal career seriously and understand attorneys. For more information, please visit www.BCGSearch.com.
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Harrison Barnes is the legal profession's mentor and may be the only person in your legal career who will tell you why you are not reaching your full potential and what you really need to do to grow as an attorney--regardless of how much it hurts. If you prefer truth to stagnation, growth to comfort, and actionable ideas instead of fluffy concepts, you and Harrison will get along just fine. If, however, you want to stay where you are, talk about your past successes, and feel comfortable, Harrison is not for you.
Truly great mentors are like parents, doctors, therapists, spiritual figures, and others because in order to help you they need to expose you to pain and expose your weaknesses. But suppose you act on the advice and pain created by a mentor. In that case, you will become better: a better attorney, better employees, a better boss, know where you are going, and appreciate where you have been--you will hopefully also become a happier and better person. As you learn from Harrison, he hopes he will become your mentor.
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