Hypothetical example: “Bob” has $500k in 401k. He has a mortgage for $400k. His house is now worth $350k. He’s looking for a loan mod. Why should the bank reduce his payments or principal when he’s got a significant chunk of money sitting there?[/quote]
Because Bob doesn’t have 100 or 300 or 600K sitting there.
69 Year old Bob has money sitting there. 35 year old or 45 year old
Bob is just the caretaker for 69 year old bob.
Why aren’t companies in trouble allowed to use the pension funds to
pay salaries for all staff? After all, it’s just sitting there, and isn’t
it important the firm
If Bob uses that money now to settle his underwater house,
he won’t have a pension.
Bankers are supposed to be smart with money.
Shouldn’t the bank managers who got big bonuses for this mortgage
pay those back first?
(I do not understand republicans who weep for billionaires and rage
at poor people)
