Jacob Nordby breaks down the Financial Bail Out Plan

Jacob Nordby uses the whiteboard to illustrate what's happening in the ongoing financial firestorm--what the BailOut does, who it helps and what should be done

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[jacobnordby]

also, I am really tired of comments like "...the taxpayer will hardly feel the hike". Frankly, that argument has been applied in layers far too many times on both a federal and state level.

[ozziindaus]

Comparitively speaking, the immediate tax increase, if it even passes, which I doubt, will be insignificant when compared to cost of living increases. As the US approaches winter, pain wont come in the form of taxes but instead the lack of affordable heating fuels. That's what I meant by that comment.

Also money socked away and not leveraged is simply waisted. Money spent on discretionary consumption is worse. Borrowed money spent on discretionary consumption, well that's what got us here.

[jacobnordby]

we absolutely agree on your last 2 sentences :-)

[jacobnordby]

Thanks for your comments.

On your second point, I don't think that "Main Street" America is generally under leveraged. Sure, if someone has socked away a bunch of money and is sitting there debt-free, then perhaps it would make sense to employ some financial leverage.

What I see Americans doing mostly is just using more and more debt--and that attitude/philosophy has driven economic policy on the Federal level for far too long

[caloldguy]

Great video. Love how you put these together, your explanation of what is going on is great. Easy for folks to understand and grasp. Terrific job!! Thank you Jacob for the video, I always enjoy your work.

CaliOldGuy

[jacobnordby]

Thanks, James! Your son shot the clip--as you probably know. He's a great guy!

[OrlandoMtgPro]

Jacob

Nice vid. send me an email, I would like to talk to you about it but know you ahve a lot on your plate.

Chris the implementer

[iSeeDjibouti]

you have really pretty eyes

[phillyinvestor]

thanks for the great video

[ksmichelle]

people living off of credit will end up in a worse place. Tax payers will pay to repay this gov't funny money. If people fall into the welfare system...taxpayers will pay. If people continue to lose homes, the less people paying property taxes therefore home owners will have to cover that through higher property taxes. Bottom line, now is the time for people to work needs and working HARD for the wants. Nothing comes free...it all takes hard work. We will bounce back...in time.

[ksmichelle]

Your views could not be more on point! I appreciate your mentorship and truly enjoy working under your guidance. A ton of people out there are in a hurt financially & need the tough love approach to ensure that they are still alive after this. If they don't receive this tough love in the form of truth and advice, we the tax payers will suffer. Creditors outside of mortgages will start lowering limits closing accounts just to save their assests.....

[MortgageBiker]

Jacob,

Well delivered, great information. Glad to see that you are out there educating. Thanks for sharing.

Hammer

[idnotego]

Thanks for the time you spent in explaining what's going on in laymans terms. I hate the fact that many are saying, it needs to be done and the government will turn a profit (has any government ever profited without taxation??). Also its a double-whamey bc. we will have to pay back through regular taxes AND loss of purchasing power (inflation tax) if inflationary tactics are continued; as I believe Bernanke will do bc. he's studied the Grt. Depression and believes 'deflation' was the culprit.