Reply #72: "The debt is to ourselves, which is really just an accounting trick." [View All]

[ljm2002]

So if I borrow from my 401k account, I owe it to myself, and it's really just an accounting trick?

No, it is not just an accounting trick. It is reflected in the accounting, but the transactions are clear and the debt is indeed just like any other debt that must be repaid.

Now it is true, if I default on my 401k debt repayment, I won't come and break my own kneecaps in order to collect. So in that sense it is different from owing (say) the Mob. But the debt is owed fair and square, and there is no "accounting trick" about it.