Using 401(k) Plans for Fiscal Stimulus

It could be a fast way to boost the economy.

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Venture capitalist-blogger John Ellis offers up an original fiscal stimulus plan:

Well, it's not mine, actually. It's the brainchild of one Leonard Yablon, my neighbor and friend and the former CFO of Forbes. And it goes like this:

1. Allow individual 401K withdrawals of $12,000 for the next 100 days.

2. Individual withdrawals up to $12,000 will be tax free.

3. The result should be an immediate infusion of $120-$180 billion into the economy.

4. Which should stabilize the markets. There are other plans out there. But the Yablon Plan seems the easiest to get done fast.