If the economy crashes and people are in debt, what will happen to them?

[Deja Q]

I am getting down there but can't get access to my retirement money until I leave my job for 30 days (how stupid is that?) Even then, they'll take 20% off the top and I hope that money came from pre-taxed income then.

Would I be better off resigning, getting all my money out, and hoping to find a job in time?

As if it matters, they ARE working to eliminate our positions anyway... so I'm hoping that happens before the crash.

Silly, isn't it?

[xxqqqzme]

1. nope, it's called survival

n/t

[FloridaPat]

2. The bad thing is mortgages. People try to get out of debt, but

their first concer should be their mortgage. Especially if you live in a state like Florida where if you go bankrupt, they can't get your home.

[gmoney]

3. If the economy crashes...

the money in savings will likely be decimated by inflation... you know, the kind where it takes a wheelbarrow full of bills to buy a loaf of bread.

The GOOD news should be that the thousands of dollars in credit card debt we're all carrying will also seem smaller, provided income somehow manages to keep up with inflation.

But I think the reality is that if the economy crashes, it's going to be fucking anarchy and the survivalists will be proven right. I doubt life will be worth living at that point anyway, so I'm not losing too much sleep over liquidating my IRA before the crash.

The other GOOD news is that, despite the rise of China and our deficits, we do still drive a huge chunk of the world economy, and I think we'll be allowed to spend ourselves into debt for at least another 30-40 years before the rest of the world pulls the rug out from under us. If they wipe us out SOONER, they can't get more money out of us. If they drag it out, then we essentially become wage slaves to the Chinese and the few US aristocrats, like the Walton family, who are making money on both ends and thrive on poverty.

Check out the film The Trigger Effect for a taste of it. Or Soylent Green for that matter.
http://imdb.com/title/tt0117965/

[no name no slogan]

4. We'll all be fed to the Christians

...and if they're withholding 20% from your $$$ off the top, it was probably pre-tax money in the first place.

I would hold off liquidating your retirement funds, because you're going to pay through the nose for it if you do. You'll not only have to pay income tax on it, you'll also face a penalty from the IRS for withdrawing it before age 59 1/2.

I used to work in the investment/retirement planning business, and I saw a lot of people make the foolish mistake of cashing in their tax-qualified retirement plans-- especially when there were other sources of funds available that would have served the purpose.