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Reply #36: That's why they need to work with the banks and use this as a "bargaining chip" [View All]

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TornadoTN Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Oct-13-08 12:03 PM
Response to Reply #29
36. That's why they need to work with the banks and use this as a "bargaining chip"
If someone is able to dip into their 401k penalty free up to $10,000 and use it to stave off foreclosure, than the banks needs to be ordered by the government to negotiate new terms with this in mind to either drop their rate, shave off part of the loan, or settle it for an agreed upon price.

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  -Obama to propose penalty-free IRA and 401(k) withdrawals sabra  Oct-13-08 11:20 AM   #0 
  - K & R!  Hope And Change   Oct-13-08 11:21 AM   #1 
  - That makes sense. nt  Kristi1696   Oct-13-08 11:23 AM   #2 
  - might that cause several funds to flop?  NightWatcher   Oct-13-08 11:24 AM   #3 
  - Doesn't it depend if it's a LOAN versus a permanent withdrawal? nt  writes3000   Oct-13-08 11:26 AM   #7 
  - You make good point  ellacott   Oct-13-08 11:27 AM   #8 
  - people have already used their homes as ATM's and taken everything out  NightWatcher   Oct-13-08 11:29 AM   #13 
     - We are of inning one of this crisis  Jake3463   Oct-13-08 11:33 AM   #19 
  - 10,000 won't kill the funds  Jake3463   Oct-13-08 11:29 AM   #11 
  - Wow  ellacott   Oct-13-08 11:25 AM   #4 
  - Loans  MtUpWithWngsAsEgles   Oct-13-08 11:27 AM   #9 
  - Yes, I've thought about that also.  ellacott   Oct-13-08 11:51 AM   #22 
  - Loans are subject to you're employer's rules...  FloriTexan   Oct-13-08 11:58 AM   #30 
     - Oh my, I'm sorry that happend to you  ellacott   Oct-13-08 12:33 PM   #39 
     - Wow  MtUpWithWngsAsEgles   Oct-13-08 12:50 PM   #42 
        - What sucks even worse...  FloriTexan   Oct-13-08 12:58 PM   #44 
           - That is so unfair  ellacott   Oct-13-08 01:44 PM   #47 
  - Don't  nichomachus   Oct-13-08 11:54 AM   #26 
     - deleted  MtUpWithWngsAsEgles   Oct-13-08 12:51 PM   #43 
  - Yes!!! If I understand it, it means most average Americans will understand it!!  writes3000   Oct-13-08 11:25 AM   #5 
  - that could cause a run on the funds, which will spike the Dow downward  davepc   Oct-13-08 11:26 AM   #6 
  - They already are having that  Jake3463   Oct-13-08 11:30 AM   #15 
  - Not with a limit of $10,000 - not even close.  Rabrrrrrr   Oct-13-08 11:31 AM   #17 
  - He should NEVER say that McCain has a "good idea"!  Democat   Oct-13-08 11:28 AM   #10 
  - This is a horrible idea....  tyne   Oct-13-08 11:29 AM   #12 
     - taking money out of baseball cards  Jake3463   Oct-13-08 11:31 AM   #16 
     - If someone has a foreclosure isnt this far more devastating than having your 401k drop by 10K?  bushmeat   Oct-13-08 11:52 AM   #23 
        - Only if the $10,000 will stave off foreclosure permanently  nichomachus   Oct-13-08 11:56 AM   #29 
           - That's why they need to work with the banks and use this as a "bargaining chip"  TornadoTN   Oct-13-08 12:03 PM   #36 
              - BINGO!  bushmeat   Oct-13-08 12:12 PM   #37 
                 - Further, this would be a grand-slam for the people for bailing out the banks  TornadoTN   Oct-13-08 12:33 PM   #40 
  - This is good.  lumberjack_jeff   Oct-13-08 11:30 AM   #14 
  - I am with you! It makes sense to me to help our middle class right now for a short time period.  1776Forever   Oct-13-08 11:32 AM   #18 
  - This is an AWESOME idea. How many sat by and left their 401Ks alone because  elkston   Oct-13-08 11:46 AM   #20 
  - Honestly folks .. This is either a romour or a BAD BAD idea  TheCoxwain   Oct-13-08 11:51 AM   #21 
  - It's part of his rescue plan  ellacott   Oct-13-08 11:52 AM   #24 
  - The limit is $10,000 and those that REALLY have no other choice ...  elkston   Oct-13-08 11:54 AM   #25 
  - it will allow people to help themselves  creature of habit   Oct-13-08 11:55 AM   #27 
  - I agree - but we need some kind of protections built in to keep this from being used improperly  TornadoTN   Oct-13-08 12:00 PM   #32 
  - That's the thing, people are going to be raiding their 401ks,  thecatburgler   Oct-13-08 12:01 PM   #33 
     - You're right. I don't think people will take the money out to "shop."  LonelyLRLiberal   Oct-13-08 01:52 PM   #48 
  - I'm a bit startled by this as well - I think there are better options on this same idea  TornadoTN   Oct-13-08 11:56 AM   #28 
  - We need people to be making enough money to save.  thecatburgler   Oct-13-08 11:59 AM   #31 
  - But we should remember that consumer spending is a huge part of this economy,  stevietheman   Oct-13-08 12:34 PM   #41 
  - Yes, it pays a huge part of this economy - but I don't believe the 10k should be used for spending  TornadoTN   Oct-13-08 01:30 PM   #46 
  - People are losing their jobs, their INCOME  sandnsea   Oct-13-08 01:02 PM   #45 
  - It's about time.  Sentinel Chicken   Oct-13-08 12:02 PM   #34 
  - WOW  npincus   Oct-13-08 12:03 PM   #35 
  - I'm certainly no expert nor an economist,  Missouri Girl   Oct-13-08 12:31 PM   #38 
  - Wow, did the market rocket up after this Obama speech?  Democat   Oct-13-08 04:05 PM   #49 

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