Ireland has unveiled the harshest budget measures in its history, a four-year plan to slash deficits by e15 billion ($20 billion) so it can receive a massive bailout from the European Union and the International Monetary Fund.

The austerity plan axes thousands of state jobs, trims welfare benefits and pensions, and imposes new taxes on property and water. In all, it seeks to cut e10 billion ($13.3 billion) from spending and raise e5 billion ($6.7 billion) in extra taxes from 2011 to 2014.

Even Prime Minister Brian Cowen conceded Wednesday the plan would hurt the living standard of everyone in the nation.

Yet analysts still expressed doubts that the EU-IMF rescue loan, which Cowen said would be about e85 billion ($115 billion), would be big enough to save Ireland from an eventual default.

And bank shares plummeted for a third straight day on the Irish Stock Exchange, reflecting growing expectations that investors will be wiped out if the government is forced to seize majority control of the country’s two dominant banks, Allied Irish and Bank of Ireland.

“The government is completely in denial about the amount of money they’ll have to borrow,” said Constantin Gurdgiev, a finance lecturer at Trinity College Dublin and an economics adviser to IBM in Europe.

Ireland is still negotiating the terms of the bailout with European Central Bank and IMF experts. The government hopes its tough budgetary medicine will permit the country’s 2014 deficit to fall to 3 percent of gross domestic product, the limit for the 16 nations that use the euro currency.

While most eurozone members are exceeding that rule, Ireland’s deficit this year is forecast to reach 32 percent of GDP, a modern European record, fueled by exceptional costs from its unfathomable bank-bailout effort.

“Today is about Ireland putting its best foot forward, Ireland saying: Yes, here is what we’re prepared to do as a government and a people to put right what has to be put right, and to give ourselves prospects and prosperity again,” said Cowen, who is widely expected to resign or be forced from office within weeks.

Business leaders welcomed the package as brutal but unavoidable given that Ireland is all but frozen out of normal lending markets and its banks are running out of cash.

The EU’s financial affairs commissioner, Olli Rehn, said the package “strikes a good balance … to protecting the least well off.” He said Ireland’s determination to narrow its deficits quickly provided “a sound basis” for the bailout talks.

But outside the guarded iron gates of Cowen’s office, about 100 activists denounced the government and the IMF.

“This is a road map back to the Stone Age,” said Jack O’Connor, president of Ireland’s largest union, SIPTU.

He noted that Ireland had already suffered nearly e15 billion in cuts and tax hikes since 2008, gutting economic growth and helping to double unemployment to 13.6 percent.

“Ireland needs a strategy for growth, but this plan will achieve the opposite,” said O’Connor, who plans to lead a Dublin protest march on Saturday against the cuts.

Fellow Europeans have marveled at how the Irish, despite facing the eurozone’s harshest cuts, have responded with only token protests until now. Glum acceptance remained the prevailing mood on Dublin’s wintry streets.

“For the next 10 years we’re going to be paying for this bailout,” said Jordan Lancaster, a 29-year administrator at the Justice Department. “But they had to do it. There really wasn’t any other choice.”

Ireland’s 140-page National Recovery Plan proposes to introduce property and water taxes, raise the sales tax from 21 percent now to 23 percent in 2014, and cut the minimum wage by e1 to e7.65 ($10.20).

Ireland’s bloated civil service will be particularly hard hit _ seeing cuts of about ¤1.2 billion and 24,750 state jobs.

Income tax bands will be widened so more lower-paid workers pay taxes, and higher-waged workers will see annual taxes rise more than ¤3,000 ($4,000). A raft of welfare payments will be gradually reduced.

Young and old alike face higher bills and less income. University fees will rise and monthly pensions will fall up to 12 percent.

Ireland’s legendary tax-free status for authors, musicians and artists will be cut back so only the first e40,000 ($53,000) of income will avoid tax.

Left untouched, to the irritation of other EU nations, is Ireland’s exceptionally low 12.5 percent tax rate on business profits. That rate is less than half the EU average and has helped to lure about 1,000 high-tech multinationals to Ireland, far more proportionally than any other European country.

France, Germany, Austria and Britain all have demanded that Ireland raise that rate. They argue it amounts to unfair competition at a time when other EU members will have to raise their own debt-fueled borrowings to loan money to Ireland.

But Finance Minister Brian Lenihan told reporters Ireland would be shooting itself in the foot if it did anything to scare off foreign investment. The foreign companies, including 600 U.S. businesses like Microsoft and Google, generate nearly 20 percent of Ireland’s GDP.

Lenihan challenged opposition leaders, who have yet to confirm they will support the government’s 2011 budget when it is introduced Dec. 7, to accept the plan as the only possible way forward regardless of expected early elections next year.

He said the four-year plan “has to be the basis for any sensible proposals for the next general election. Anything else that’s put forward is nonsense.”

Ireland’s financial shares suffered another bloodbath on the Irish Stock Exchange, but partly rebounded from record lows in the afternoon.

Bank of Ireland fell 33 percent to e0.20, a record low, and closed at e0.27. Irish Life & Permanent _ an insurance and mortgage specialist that has yet to receive a state bailout _ fell 16 percent to close at e0.63, also an all-time low. Only Allied Irish bucked the trend, falling 18 percent but then rebounding to close up a cent at e0.34.

Ireland has already nationalized three other banks left bankrupt by the 2008 collapse of the country’s decade-long real estate mania. Property prices have slumped by more than 50 percent, hundreds of thousands of homeowners are trapped in homes no longer worth what they owe, and many of Ireland’s construction barons have declared bankruptcy or fled the country.

The government already owns 36 percent of Bank of Ireland and 18 percent of Allied Irish. The bailout experts’ requirement for greater capital reserves will have to be provided by the government, a process that analysts say will quickly lead to both banks’ nationalization, a fate Ireland has spent billions already trying to avoid.

“Irish banking shares will never _ or not for a long time _ be worth anything. The solution requires the total destruction of the existing share base,” said David McWilliams, a former Irish Central Bank economist and European hedge fund manager.

McWilliams warned that deepening austerity would only drive Ireland back into a recession, reducing tax revenues and widening the deficit again. He appealed for Ireland to abandon its 2008 bank guarantee to repay all of the banks’ borrowed billions, and instead require foreign bondholders to share the losses as Germany wants.

“The end game is simple,” McWilliams said. “Either we take the pain and the economy is crushed, as the government insists, or the people who lent the money … take the pain, as they should, and the economy can breathe.”

But Britain and Germany both have exposures to Irish banks exceeding $200 billion each, according to the Bank for International Settlements. Governments across the 16-nation eurozone warn that allowing Irish loans to default would send shockwaves through Europe’s interdependent banking system.

Credit ratings agency Standard & Poor’s raised its risk assessment of Ireland. The New York-based agency lowered its long-term rating on Ireland’s financial reliability two notches to A from AA- and kept a negative outlook, meaning further downgrades loom.

S&P’s measurement of short-term risks also fell one notch to A-1. Ireland until now, surprisingly, held the highest grade of A-1+. – AP

View full post on All Stories

On the local front:

A year ago today: For the first time in nearly three years, Rhode Island’s unemployment rate dropped, to 12.9 percent in October, offering a faint but reassuring sign that the state’s economy may be on the road to improvement. Despite inching down from an all-time high of 13 percent in September, however, Rhode Island’s jobless level still far surpasses those of other New England states. According to numbers released Friday by the Department of Labor and Training, Rhode Islanders remain out of work. And the state continues to bleed jobs, losing 1,100 more in October, a separate survey of employers shows. The work force also contracted, a potential signal that some of the most discouraged workers may have given up looking for work entirely. Given that, economists caution not to read too much into the one-month dip.

5 years ago today: A federal appeals court has upheld the life sentence imposed on crack dealer Charles C. Brown, who last year became the first drug offender in Rhode Island to receive a life sentence with no chance for parole. Brown and two other men were accused of running a “fortified crack house” in South Providence. The 1st U.S. Circuit of Appeals affirmed the convictions of Brown and his two codefendants, Charles H. Isler and Bilal Abdul Rashid. But the Boston-based appeals court erased the prison terms imposed on Isler and Rashid, sending those cases back to Providence for resentencing. Isler and Rashid will remain in federal custody pending that hearing, which has not been scheduled. Last year, U.S. District Judge Mary M. Lisi sentenced Isler to 21 years and 10 months and Rashid to 17 years and 6 months in prison. At the time, federal sentencing guidelines were mandatory, but since then, the U.S. Supreme Court has ruled that the guidelines are merely advisory. So some cases are being returned for resentencing. On appeal, all three defendants argued that they were entitled to new sentences, saying Lisi’s comments indicated she would have imposed lesser sentences if she wasn’t shackled by mandatory guidelines. In the ruling, Circuit Judge Jeffrey R. Howard noted that Isler and Rashid were given sentences at the lower end of their sentencing ranges.

25 years ago today: Providence College announces it will sell at auction an important collection of colonial and early-American silver left to the school in the will of Cornelius C. Moore, a Newport lawyer who died 15 years ago. Museums and private collectors should bid a total of between $500,000 and $750,000 for the more than 200 pieces, said Ian Irving, an assistant vice president of Sotheby’s, the New York City auction house that will hold the Jan. 31 sale. The Rev. John F. Cunningham, O.P., PC president, said the proceeds, minus Sotheby’s commission, will go to the college general fund. He said PC has no appropriate gallery or museum to display the collection. Since 1970, when Moore died, the collection “has basically been sitting in a bank vault doing nobody any good,” Irving said. He said the pieces have been segregated into 159 auction lots, which should bring bids as low as $200 and as high as $20,000 to $30,000. On the high end, he said, should be a set of three cups crafted in 1725 by John Coddington, a Newport silversmith. At a lower level, Irving estimated two Paul Revere teaspoons would sell for $500 to $600. The collection, Irving said, “is extraordinary. Never has that amount of American silver been on the market at one time.”

Read more from the Associated Press’s Today in History.

Watch video highlights of This Day in History.

View full post on All Stories

People of Australia with bad credit history need not get worried in the time of tough financial situation, as bad credit loans are made to help them out. Easy to avail, these loans will be a great help to them in time of their needs.

Bad credit loans are unsecured that’s why they are fast and approved instantly. You are not required to wait long for the funds. You can face any difficult financial situation making the use of bad credit loans. The interest rate on the bad credit loans are slightly higher than the loans approved for the people with good credit history. To avail these loans, you must be citizens of Australia and have a legal age. The bad credit loans are the most convenient loans which prove a real help in the tough financial situation of the person. The best idea remains to gain all the valuable information going online before taking any loan. This will help you choose a reliable lender and will protect you from any risk later on.

View full post on All Stories

Bad credit loans are available in two forms secured and unsecured and borrowers are free to choose either option. It is advisable to select the option as per the repayment capability and pocket. In secured loans, borrowers get huge amount at low interest rate against any valuable asset or property. It is risky for consumers because lenders can sell the collateral in case you do not repay the money back. In unsecured loans, you do not need to pledge any collateral against the cash as results you get small amount at high interest rate. This option is risky for lenders. Through secured loans, applicants can take away the amount up to £75000. Generally, approval amount depends upon the value of security deposit. The repayment tenure is quiet good that easily goes up to 25 years.

On the other hand, unsecured bad credit loans help people to grab the amount up to £25000 for the time frame up to 10 years. These funds are easily available in UK finance market through online mode. Internet is the best platform which provides easy, fast and convenient funds on simple terms. Here, people get numerous quotes in order to obtain best deal that can suit financial condition. By filling a simple application, individual can get good number of quotations to compare and choose best deal.

Loans for people with bad credit history is generally of small amount up to $ 1500. You should always keep in mind that, there are various websites which have false promises regarding the loans. So, you must always check with the banks even after checking the details online about the loans and their interest. Sometime, the rate of interests of these loans are very high, so you must ensure that, you pick the best deal according to your necessity and capacity to pay back.

Poor credit loans history is not a problem with these banks. They give you an opportunity to improve your repayment record which you can do by returning the amount of money taken on time and thereby, winning the trust of the bank for lending you more money in future. There are many private lenders in the market who have lot of money and are looking for variety of business dealings. The bad credit history is not an issue with these lenders as the only important thing for them is to make more money. They will always be interested in investing in your business provided they find it interesting and profitable.

In today’s market in UK you will find a number of reasons to be called a bad credit holder. A person can get it because of some previous defaults, CCJ’s, bankruptcy etc. this makes it all the more difficult for you to gat an auto loan. Lenders may not treat you properly and even discriminate you. But if you go in for auto loans bad credit online then you will be treated well and you will get the loan you have been wanting. So with these loans you can buy your dream car or even a used car.

Working of the loan:

Once you have decided your budget you need to find a lender for the loan amount. Then you need to fill out an online application form containing correct details and submit it. You will need to provide the lender with a down payment. Though you can negotiate but you should try to ay at least 25% of the whole amount as down payment. This acts as a proof of your ability to pay.

Some lenders give auto loans bad credit online as a secured loan where you need to procduce collateral. It can be an asset or even the car that you buy. Other lenders may give you an unsecured loan. Here the risk factor is high so it is offered at a higher rate of interest. But due to high competition a borrower can even negotiate the rate of interest.

One can choose either long term or short term loans. Long term loans give you time from 10-25 years with low rate of interest. But with short term ones you need to pay back within 3-5 years.

A successful marriage has always required astute planning, particularly financial. From years as a marriage counselor, it is my experience that the major hurdles are sex and money but not necessarily in that order. . And interestingly enough I required that any participant in the Marriage Symposium I sponsored be married a minimum of five years. This is an arbitrary figure determined by myself I have found that those married over five years have different problems than those married less. After five years the romanticism has flowered and the reality of spending your life with someone sightly different from the one I married has begun to come crashing down.

But these new FICO rules are raising havoc with married couples as well as with partners and live-ins.. For years it has been common practice to include one’s spouse as an authorized signatory on the other spouse’s credit cards.

At first blush, it seemed so romantic – signifying the oneness of our union. Then it became a practical matter. Put the spouse on the gasoline credit card so each could purchase fuel for his/her car at one’s leisure. Then it was extended to department credit cards so clothing and other household purchases can be made by the one who usually shops for those items. After all doesn’t that spouse has more time for that sort of thing. Besides it is so much more convenient to write just one check every month

Now with many department stores doing away with their own individual credit card (Target being the latest), why not put the spouse on the VISA or MASTERCARD, since they are more universally accepted whenever and where ever one shops. In that way the number of cards being carried can be reduced hereby reducing the risk of being lost or stolen. Good sound thinking and practice. After all – we are one union

At this point enter FICO and the rules change.

With the advent of the Credit Society, it became necessary to have a central source to determine the creditworthiness of an individual applying for credit. What is that applicant’s credit history? The 3 big credit reporting agencies entered the scene and fulfilled stop gap measure. But who has the time to examine a lengthy though accurate report when the needs of the customer who is in front of me must be served before he decides to take his business elsewhere. Now if there were some simple mathematical figure that could represent the financial history of a potential customer and consequently the financial risk to a lender, instant decisions could be made which were reliable. The Fair Isaac Co grasped the opportunity and FICO enters the scene.

But as always, someone is bound and determined to beat the system. Part of the American Dream is owning your own home. But how sell a home to someone who has a low credit score. To deprive that someone of the American Dream is un-American.

I’ll build houses but only if you can buy So there arose a new market – those with excellent credit (for a fee, of course) could rent their account to one with a low credit score – make them an authorized signatory. The one with the low score realized the American Dream. The person renting his account received a fee, the housing market boomed, the economy flourished, unemployment was reduced. Everyone was happy. It appeared to be a WIN – WIN situation. Then the bubble burst and foreclosures became common.

FICO changed its rules again and tightened up on renting out one’s account (known in the trade as piggybacking…) Well intended but the innocent also suffer. Remember that spouse who thought it was romantic to put their spouse on their account. Suddenly the spouse put on another’s credit card has no individual credit despite a history of timely payments, etc. And in a time of financial crisis, credit is only granted on one’s individual credit history. No credit history – no credit. What’s a spouse to do????

In my opinion, each spouse should retain sole control of any credit card and adopt the new Marriage Commandment – YOU CAN SHARE MY BED BUT NOT MY CREDIT CARD!!!

Don Sheehy Myakka City, FL http://www.more4trust.com