The Current Banking rules were politically driven and heavily influenced by powerful companies who resisted regulating the use of the money.
They left a big void in banking rules that have tied bankers from making quality loans to people who have saved for retirement and are 55-65 years old.
Current laws require banks to make any client requesting a loan to produce proof of current adequate income. The banks can not look at future income from retirement savings to service the debt. Typically they require proof of income from a W-2 and 2 recent tax returns.
We have a very large number of people in this age bracket that were laid off (they are more expensive than younger replacements) and this age group is more prone to serious medical needs that can lead to disability.
The banks no longer look at equity until the first hurdles are passed and are required to focus on income. Sadly, the banks look at income 180 degrees opposite than the IRS. You may have 1 or 5 million dollars of equity that will become available mostly tax free shortly, but you cannot touch it as the IRS will see it as income and heavily tax it.
Collateral now means nothing. This oversight in writing laws to protect one group that hamstrings another is keeping money from being put in play and many "Boomers" are caught very short on cash despite having done exactly what our government asked them to do.
This is particularly harmful to those who have a need to pay medical bills to stay alive or preserve a decent quality of life. Upon spending savings, the IRS considers the money as income but the banks can not do the same. If you make money through investments and are not a professional, then the income can not be counted by banks. The same income earned by a professional can be counted.
Sounds like a small issue but it is keeping millions of dollars from being used which hurts the economy. If the money is used, then the "Boomers" are further at risk of needing government help in their old age due to IRS calculations that remove their deductions for such things a medical expenses and even Social Security.
The largest generation with the largest pool of money are cut out of our economy and placed in jeopardy.
Disclosure: I am long AAPL.
Additional disclosure: I am disabled from injury. Expenses from savings to keep me alive and stabilize my life, which is now not at risk, all were considered earnings by the IRS. With over a million dollars in real paid for property, I can not get a loan to do business with those investments and lost all of my deductions.