[skeeter]

I'm not sure I agree. Liquidity is the main problem right now; this would tend to take capital away from institutions and could exacerbate the problem. Also, 401k's are for retirement and should be left that way if at all possible.

If the accounts are used to pay down mortgage dept or buy up foreclosures only, then loosening up these 401ks would improve the liquidity situation.

Most people have more tied up in their primary residence than their retirement account anyway - my order of priority is maintaining my mortgage first.

[cake_crumb]

According to Obama, you won’t have to worry about paying your mortgage ;-)