Can't connect to mysql by telnet 127.0.0.1

Question

I can't telnet MySQL on my localhost. MySQL is up and running and works fine with Apache-SSL/PHP/MySQL server but I can't connect by telnet:

telnet 127.0.0.1 3306
Trying 127.0.0.1...
telnet: Unable to connect to remote host: Connection timed out

The same for localhost

telnet localhost 3306
Trying 127.0.0.1...
Trying ::1...
telnet: Unable to connect to remote host: Connection timed out

Netstat confirms MySQL is running on 3306 port:

netstat -alpent | grep 3306
tcp        0      0 127.0.0.1:3306          0.0.0.0:*               LISTEN      105        522804419   17231/mysqld
tcp        0      1 127.0.0.1:39268         127.0.0.1:3306          SYN_SENT    0          522915717   17433/auth
tcp        0      1 127.0.0.1:39254         127.0.0.1:3306          SYN_SENT    0          522915266   17434/auth
tcp        0      1 127.0.0.1:39250         127.0.0.1:3306          SYN_SENT    0          522915091   17432/auth

I can connect with -h localhost:

mysql -h localhost -u root -p
Enter password:
Welcome to the MySQL monitor.  Commands end with ; or \g.
Your MySQL connection id is 106
Server version: 5.1.69-0ubuntu0.11.10.1 (Ubuntu)

Copyright (c) 2000, 2013, Oracle and/or its affiliates. All rights reserved.

Oracle is a registered trademark of Oracle Corporation and/or its
affiliates. Other names may be trademarks of their respective
owners.

Type 'help;' or '\h' for help. Type '\c' to clear the current input statement.

mysql> exit
Bye

But I can't connect with -h 127.0.0.1:

mysql -h 127.0.0.1 -u root -p
Enter password:
ERROR 2003 (HY000): Can't connect to MySQL server on '127.0.0.1' (110)

And yet I have put bind-address 127.0.01, vi /etc/mysql/my.cnf: ...

# Instead of skip-networking the default is now to listen only on
# localhost which is more compatible and is not less secure.
#bind-address           = localhost
bind-address           = 127.0.0.1

And I restarted MySQL:

/etc/init.d/mysql restart
Rather than invoking init scripts through /etc/init.d, use the service(8)
utility, e.g. service mysql restart

Since the script you are attempting to invoke has been converted to an
Upstart job, you may also use the stop(8) and then start(8) utilities,
e.g. stop mysql ; start mysql. The restart(8) utility is also available.
mysql stop/waiting
mysql start/running, process 17464

IPTables rules are empty:

iptables -L
Chain INPUT (policy ACCEPT)
target     prot opt source               destination

Chain FORWARD (policy ACCEPT)
target     prot opt source               destination

Chain OUTPUT (policy ACCEPT)
target     prot opt source               destination

So I don't know what to check and Postfix can't connect to MySQL. Does anyone know what I should check ?

Actually, I can't connect to any service from the server:

telnet 127.0.0.1 80
Trying 127.0.0.1...
telnet: Unable to connect to remote host: Connection timed out

telnet 127.0.0.1 443
Trying 127.0.0.1...
telnet: Unable to connect to remote host: Connection timed out

My /etc/hosts file:

127.0.0.1       localhost
127.0.0.1       mail.mydomain.com
::1             localhost ip6-localhost ip6-loopback
fe00::0         ip6-localnet
ff00::0         ip6-mcastprefix
ff02::1         ip6-allnodes
ff02::2         ip6-allrouters

# Auto-generated hostname. Please do not remove this comment.
205.xxx.yyy.zzz ve.uuuuuu.bbbb.cccc ve

Resolved. The lo interface was down ! ifconfig lo up fixed it.