8 From 90 Bank Fail In Stress Test Banking In Europe

8 of 90 failed banks in the stress test banks in Europe are aimed to find out how strong the EU's financial system. Banks that fail the test must be "immediately" taken steps to strengthen their financial capital against losses, said the European Banking Authority. Banks that fail the test because their capital is under 2.5 billion euros ($ 3.5 billion) of capital they need to pass the test. Of the eight banks that fail the test consists of two banks from Greece, five banks from Spain and one from Austria.

Stress Test is a key element in combating the crisis of European debt. EU officials want to identify weak banks and make them strengthen their finances so they could survive if the probability of default on Greek government bonds or other debt-ridden countries.

Stress Test run by national banking regulators / ABS to simulate what would happen to bank finance in the event of a recession where growth fell more than 0.4 percent below the estimate of the European Union. For the 17 euro zone countries, which will be a decline of 0.5 percent this year and 0.2 percent next year.

Some economists said the test was not strong enough because they did not include a scenario where if the Greek government bond default. Regarded as a key risk for the economy of the European Union.

Germany's Helaba Bank withdrew from the test because of a dispute with the EBA on the calculation of whether the majority of bank capital in the form of non-voting ownership by the government will be counted or not.

President Barack Obama said Congress had "the opportunity to do something big" and stabilize the American economy for decades to cut the deficit even increased the national debt limit before the deadline Aug. 2. But he declared, "We're running out of time" and adding that everyone must "be willing to compromise."

Obama says he's ready to make tough decisions such as the cost of Medicare and challenged Republicans to do the same.Also a warning that failure to raise the debt ceiling would mean "effectively a tax increase for everyone" if the government will default and a rise in interest rates in America.

Central Bank of China announced that foreign exchange reserves up $ 153 billion in the second quarter of this year to $ 3.2 trillion. Of the increase was about one third are caused by China's decision to allow the yuan to be used in transactions in foreign trade.

Gold prices reached a series of record highs this week because of the possibility of a stimulus that will be pumped into the American economy and fears of debt crisis of Europe. Range of movement of the current gold price is between $ 1.592 - $ 1.576 per troy ounce.