My son's blue collar workmates are taking what they can from their 401k's today after Bush's speech

[cyberpj]

last night freaked them out (intended purpose) with the "next great depression" phrase.

I know this is how bank runs get started and I have told him to resist doing that since he's young and could only get a 'hardship' loan for up to half anyway but he says that would be better than nothing. I reminded him he'd have to pay back any 'loan' with interest plus pay taxes on what he got but he and his construction buds are feeling like anything they can get now will be better than losing it all.

He counts on me for financial advice and I've done well for him under normal circumstances. This whole situation has my non-economist head spinning and at this point I'm not sure how to sound rational to him next to his frightened buds.

Any advice?

[AnneD]

1. It's a Wonderful Life.....

the scene with the run on the bank. Who was panicing who was calm. Cashing your chips in is panicing and it costs you money. As hard as it is...sit tight. Folks that panic lose twice as much.