The government took an 85 billion euro IMF/EU rescue package to bail out the country’s banks, felled by a reckless decade-long building boom, and extended a blanket guarantee to 440 billion euros of the banks’ liabilities, including senior bonds.

As a result, Ireland’s total debt soared from 44 percent of GDP in 2008 to 106 percent last year, according to the International Monetary Fund.

The overriding reason why Dublin cannot bow to public calls to “burn the bond holders”, even if it wanted to, is simple: the European Central Bank would not permit it. The ECB worries that imposing losses on senior bond holders in one country would instantly spread contagion throughout the 17-member euro zone.

The total cost of recapitalising Ireland’s banks so far is estimated at 86 billion euros, or 52 percent of GDP.

For McCarthy, the University College Dublin economist, making governments pay for disastrous private-sector lending decisions is not just iniquitous. By refusing to countenance losses for senior bond holders, the ECB is destroying market discipline, he argued.

“We have built a moral hazard machine and it needs to be stopped,” McCarthy said. “There is no market discipline if you continue to give 100 cents on the dollar to people who bought bonds in banks that are closed in the Irish case.”

Having governments assume banks’ obligations to their creditors also risks doing permanent damage to the sovereign bond market because buyers will stay on strike if they cannot quantify states’ contingent liabilities, he said.

“Clearly, the ECB thinks that bank debt is more important that sovereign debt. But there comes a point where these things just have to be faced. A sovereign insolvency in Spain, or in Italy for that matter, runs the risk of a very big financial catastrophe in Europe,” McCarthy said.

Although Spanish property experts point to an array of factors that make it unlikely that prices will fall by more than another 15 percent, the IMF has said “greater reliance on public funding may be needed”, while Moody’s Investors Service sees a risk that the banks could still become a burden for the state.

In a note published on Friday, economists at Barclays Capital estimated future expected losses for the Spanish banking system of 198 billion euros.

Banks had made 110 billion euros of provisions as of the end of 2011, leaving 88 billion euros of losses to be cover, BarCap calculated.

A high school senior who is days away from graduating may have to put all of his college plans on hold.

Corbin Russell has been denied any college loans because he was declared dead in 2010.

Mr Russell first found out something was wrong with his credit when his application for a car loan was denied.

According to news station 14news.com, the senior’s credit score had several pockmarks in it, and his Social Security number was flagged.

His mother, Monica Russell, has experienced frustration after frustration trying to prove that her son is alive, and to get his loan money approved.

When she tried to call the Federal Trade Commission, she just got an automated system. ‘I couldn’t get any response from them,’ she told The Clay County News.

The Social Security administration said earlier this week that their records show Mr Russell is indeed alive, but that the issue lies with the credit bureau.

However, he might have to defer enrolment if he cannot secure a college loan. The News estimates that college expenses for a single year range from around $32,000 to $37,000.

Sainsbury’s 5.9 per cent rate is available for loans between £7,500 and £15,000 [more details]. However, to qualify for this low rate, you must opt for a repayment term of between one and three years.

in order to get this deal you need to have a necter card which you could get for free in the sainsbury store near you.

This product is also aimed at those with good credit histories. Only those aged 18 or over can apply and you can’t have been declined for credit in the last month, have a history of bad credit arrears, County Court Judgements, default or bankruptcy.

If you are looking to borrow over a longer period, the rate is higher at 6.1 per cent – this is available for four or five-year terms.