How to have this Crash get HUGE: 401k

Hattip to Sandman for this link.



http://tinyurl.com/35h2x6

http://online.wsj.com/article/SB119162722016150793.html?mod=hpp_us_whats_news

From Sandman's link:
Despite potential tax and investment consequences, more individuals have been borrowing from their 401(k) plans or taking hardship withdrawals in recent months, some retirement-plan providers say.

Not all plans have seen jumps, and more-comprehensive statistics won't be available until next year.

In other words, J6P won't know about this until its blown up another part of the credit economy. Sigh...

Later in the article:
Most plans allow borrowers to take money out of their 401(k) accounts to pay tuition, purchase a residence, pay medical or funeral expenses, or to avoid eviction or foreclosure. Borrowers must repay the loan plus interest, which is typically set at one or two percentage points above the prime rate.

20% of Fidelity 401k customers have taken advantage of this... so basically we're going to see 10% to 30% of the 401k funds go "poof" due to this RE bubble.


This is going to be a really ugly recession.

Got popcorn?
Neil