Cashing out my 401(k)

I really don't want to do this but I feel as if I have no choice.  Since it's been about a month since I was terminated from my old job and unemployment has finally paid me... we are running out of money.  I don't get paid until this Thursday and it's only for 1 week of pay.  I'm panicking a bit...I just checked my 401(k) account and I lost $1500 in the past 2 days alone.  I am losing faith in our system and after a lot of thought, I'm going to request a hardship withdrawal from my previous job.  There's not much in there but it's enough to pay our mortgage, and get caught up a bit.