Thursday, June 09, 2011

The piggybank of last resort

This is awful news via Zero Hedge: "30% of people with a 401(k) have taken out a loan against it: new all time record." I know times are tough and homeowners can't cash out on their houses anymore, but there are so many downsides that go beyond the obvious of raiding the fund that will keep you out of cat food after Social Security benefits get scaled back.

Zero Hedge puts in the last word: "Luckily, Americans have demonstrated beyond a reasonable doubt that when it comes to abusing rainy day capital to satisfy trivial material needs, there is nothing to worry about. Nothing at all." After all, tomorrow is another day.

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