It is said that "whom the gods would destroy, they first drive mad." Even the most cursory glance at this nation's current banking crisis would strongly suggest that the deities are out to get us.
Plainly said, our entire credit system -- the basis upon which the economy rests -- has gone stark raving mad. If you don't believe that, I suggest you take a look at where the various bailouts have left us, or the current phony furor over the AIG bonus payments that resulted from the actions of members of Congress and Obama administration.
A case in point: For the last few months I have been attempting to refinance my mortgage in order to take advantage of those juicy below-5 percent interest rates my bank is advertising. Just about every day I approach my bank's branch manager to see if this is the day I will qualify.
Yesterday when I complained anew about my inability to qualify for refinancing my mortgage despite the fact that I faithfully make my monthly mortgage payments, the bank manager told me that she -- a bank executive -- was in the same boat as I am.
Get this. She is a single mother who has worked for my bank for more than 20 years and has risen to the key position of branch bank manager -- the equivalent of being the president of a local independent bank -- no small potatoes.
She told me that she had not only been told that she wasn't qualified to refinance her own mortgage, but was just informed that her equity line of credit had also been cancelled, as if she were some kind of irresponsible credit risk.
If that's the case with her, it's obvious that I have zero chance of refinancing my mortgage.
Both of us are financially stable individuals with substantial incomes. We pay our bills on time, have proven to be fiscally responsible, and own houses with values much in excess of the amounts of our mortgages.
The sole reason for the fact that we cannot qualify for refinancing has nothing to do with our own stable financial situations and everything to do with insane government regulations so complicated they defy any attempts to justify or even understand them.
Simply put, if your house is worth more than government regulations say it can be, you are automatically unqualified to apply for refinancing. Nothing else matters. You're just plain out of luck.