Gold Resource Corp (GORO)

[GORO2020]

America........DC Can't PRINT enough $$$$$TRILLIONS to Cover the Price Tag of this Chinese ""FUBAR""!!!!!!!!!!!!

Come Summer, America Will be Dealing with Record Unemployment, The Highest Spike in Crime since the 60s and a ANGER Level by Most Americans for Everything ""BIG Government""!!!!!!!!!!!!

BUY GOLD..........And if YOU Don't Own a GUN I suggest investing in a Few Home Defense Models and Ammunition!!!!!!!!!!!!!!!!

The FOOD Lines Begin across America!!!!!!!!!!!!!!!!!!!!
The FOOD Lines Begin across America

Shocking Images Show Horror Of America's New 'Breadlines'

Greater Depression? Shocking Images Show Horror Of America's New 'Breadlines'




Goldman Now Sees US GDP Crashing 34% In Q2

"The Biggest Decline Ever": Goldman Now Sees US GDP Crashing 34% In Q2
by Tyler Durden ZeroHedge

Just over a week ago, when we reported on the ongoing feud between Goldman and JPM to come up with the most terrifying GDP forecast for the US, and when we asked if a Second Great Depression has begun after Goldman's chief economist Jan Hatzius slashed his Q2 GDP forecast from -5% to -24%, we said "we expect Goldman to take the machete to this analysis as well in the coming days, because if the US economy is indeed paralyzed for at least one quarter, then all of GDP could be lost."

We were right, because early on Monday morning Goldman's Haztius did just that, and in a report titled "The Sudden Stop: A Deeper Trough, A Bigger Rebound", he writes that he is "making further significant adjustments to our GDP and employment estimates. We now forecast real GDP growth of -9% in Q1 and -34% in Q2 in qoq annualized terms (vs. -6% and -24% previously) and see the unemployment rate rising to 15% by midyear (vs. 9% previously)."

Detailing the assumptions behind his latest revision, Hatzius explains that he has increased his estimates of the peak hit to services consumption, manufacturing activity, and construction, "in light of new evidence on the severity of the hit across the different sectors" and now expects the level of GDP in April to be 13% below the January/February trend, as shown in Exhibit 1. "We assume that this drag then fades gradually by 10% each month in the services industry and by 12.5% in the manufacturing and construction industries."



cont...................


Goldman Sees A Bear Bounce, Not A Market Turn

"Too Early & Still Too High" - Goldman Sees A Bear Bounce, Not A Market Turn
by Tyler Durden ZeroHedge

This bear market has been unusual to say the least, not because of the scale of the decline, but rather because of the speed and the volatility.

The average bear market (at least based on US history) experiences a decline of around 35% - very similar to the falls that were seen at the recent low in most markets in the current bear market.

But, as Goldman Sachs' Peter Oppenheimer notes, the speed of the declines is what stands out as being exceptional; it is hard to believe that the US equity market was trading at a record high just five weeks ago. Its fall into bear market territory (the first 20% decline) took place in record time, just 16 trading days, compared with 44 in 1929, the previous fastest fall. Meanwhile, volatility has been at record levels.

After three consecutive days of moves of +/- 9% (the first such series since 1929), last week posted an 18% three-day rally in the US, and similar moves in many other markets. This was the strongest comparable return in the US since 1933 and in Europe on record.



cont...............


Moody’s cuts outlook on $6.6 trillion US corporate debt pile to ‘negative’

Moody’s cuts outlook on $6.6 trillion US corporate debt pile to ‘negative’
By Jeff Cox

Moody’s Investors Service has cut its outlook on corporate debt to negative, saying that an economy about to tip into recession because of the coronavirus will result in rising default rates.

The ratings agency warned that sectors “most sensitive to consumer demand and sentiment” will be especially hard-hit due to social distancing measures that slashed economic activity. They include global passenger airlines, the lodging and cruise industries, and autos.

In addition, plummeting energy prices will leave the oil and gas sector exposed, while banks also will face a challenging environment amid falling interest rates that eat into profitability and a deteriorating economy that will undermine credit quality.

“The coronavirus will cause an unprecedented shock to the global economy,” Edmond DeForest, senior credit officer at Moody’s, said in a report. “We have revised our growth forecasts downward for 2020 as the rising economic costs of the coronavirus shock and the policy responses to combat the downturn are becoming clearer. Business activity will likely fall sharply across advanced economies in the first half of 2020.”

cont...............


Some of America's best-known companies won't qualify for bailout money

Why some of America's best-known companies won't qualify for bailout money
By Victoria Guida and Theodoric Meyer

Already, more than half of companies that borrow through corporate bond markets aren’t eligible to get help from the Fed under its current rules.

Macy’s and Gap Inc. are furloughing most of their workers as their sales collapse — but they might not qualify for the massive backstop for companies that Congress just passed because their finances are so bad that their debt is rated as junk.

The two iconic retailers and other companies running out of cash can’t tap into the new loan program backed by the Federal Reserve because it’s only available to corporations whose debt is considered safe by credit rating firms.

Retailers, casinos and other industries are now lobbying the Treasury Department and the Fed to get access to hundreds of billions of dollars in loans included in the massive relief bill that President Donald Trump signed into law last week. They warn that the central bank will need to cast a wider net to avoid a shockwave of defaults as private funding has begun drying up for all but the most stable companies.

Much of corporate America, “including thousands of household brands that everyone has heard of, will have no ability to get credit,” said Travis Norton, a lobbyist at Brownstein Hyatt Farber Schreck, who represents clients across multiple sectors.

Already, more than half of companies that borrow through corporate bond markets aren’t eligible to get help from the Fed under its current rules because they aren’t classified as “investment-grade.” The central bank’s efforts aren’t designed to bail out companies that might go under, but instead to offer a reassuring backstop to private lending markets.

But there are growing fears that more companies will see their credit ratings cut as the economy slides toward a recession, which would further threaten their ability to get funding. About half of investment-grade debt is only barely above junk status, and plunging oil prices could lead more companies to be downgraded.

cont.............


Beware of chasing bear market rallies, strategists warn

Beware of chasing bear market rallies, strategists warn
By Nancy Hungerford

Investors in Asia are kicking off the new trading week with a note of caution, keeping an eye on volatility emanating from Wall Street.

Following the Dow’s biggest weekly rally since 1938, and the best performance for the S&P 500 and Nasdaq on the week since 2009, investors are debating whether U.S. markets have already bottomed or if more pain is in store.

Attributing the recent gains in equities and emerging market currencies to extraordinary monetary and fiscal stimulus measures, Eric Robertsen, head of global macro strategy at Standard Chartered, warned clients that the risk-rally lacks sustainability.

Consumer confidence hit

“The release of Q1 brokerage statements over the next month will coincide with the release of global economic data showing the depths of the economic collapse,” Robertsen explains in his weekly note. “We believe these two factors combined will exacerbate the weakness in consumer confidence, already under attack from the growing health crisis and the prospect of extensive unemployment.”

He pointed out that while the market declines have been well publicized, these first quarter statements will put “negative returns in black-and-white print” for retail investors. The losses incurred on traditionally safe investments will also hit home, Robertsen suggested, pointing to a recent 5% to 15% decline in exchange-traded funds tied to U.S. credit markets.

cont.............


The Coronavirus Corporate Credit Downgrades Are Here

The Coronavirus Corporate Credit Downgrades Are Here
By Nathan Vardi
Forbes Staff

Two of America’s blue chip corporations were hit with corporate debt downgrades amid Monday’s market mayhem as Covid-19 shut down U.S. bars, sporting events, McDonald’s dining rooms, flights and even the city of San Francisco.

ExxonMobil, the nation’s biggest oil and gas company, and its fortress balance sheet, were downgraded on Monday. With commodities prices plunging, Standard & Poor’s Global Ratings downgraded ExxonMobil to AA from AA+. The rating agency said ExxonMobil’s cash flow and leverage measures fell well below its expectations and kept a negative outlook on ExxonMobil, warning the oil behemoth had not taken adequate steps to improve cash flow.

ExxonMobil immediately responded by saying it was looking to significantly reduce spending and conserve cash. “Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term,” Darren Woods, ExxonMobil’s chief, said in a statement.

cont...............


S&P:Junk bond default rate to triple within 12 months

Junk bond default rate to triple within 12 months, S&P says
By Jeff Cox
CNBC

Companies holding low-rated debt are in for a brutal stretch as the economy heads into a coronavirus-induced recession, according to a forecast Friday.

S&P Global Ratings said the default rate for high-yield, or junk, bonds is heading to 10% over the next 12 months, more than triple the rate of 3.1% that closed out 2019.

“The current recession in the U.S. this year is coming at a time when the speculative-grade market is historically vulnerable to a liquidity freeze or an earnings drop,” Nick Kraemer head of S&P Global Ratings Performance Analytics, said in a statement.

The dour outlook comes against a sudden stop in U.S. economic activity brought about by preventive measures against the COVID-19 spread. Wall Street forecasts see GDP dropping as much as 10% before recovery and unemployment spiking to perhaps 10% or worse.

The S&P High Yield Bond index has been falling rapidly, down 9.5% over the past week.

But cracks in the high-yield market already were beginning to show before the coronavirus crisis.

Fixed-income pros have been warning that companies with lower-level investment-grade debt were in danger of tipping into junk territory, a move that would have a cascading effect as funds invested in those bonds would have to sell them. Speculative-grade debt with low ratings now makes up about 30% of the space, S&P said.

In making its forecast, S&P conceded that data remains scarce in determining how bad conditions could get.

But the firm said that if efforts to fight the disease drag on and stimulus isn’t as effective as hoped, the recession could drag on and take default rates as high as 13%.

cont................


Corporate Defaults Will Hurt Banks’ Profitability And Capital

Rising Unemployment And Imminent Corporate Defaults Will Hurt Banks’ Profitability And Capital
By Mayra Rodriguez Valladares

Today’s unemployment insurance (UI) data and the junk bond market sell-off are very negative macroeconomic and market signals that will adversely affect banks. Banks are lenders both to individuals and corporations, and they also invest in corporate bonds as well as in bonds called asset backed securities, which are pools of assets such as residential and commercial mortgages, credit card debt, and student loans. As individuals and corporations default on loans and bonds, banks’ profitability and capital levels will decrease substantially.



As I wrote last week, the unemployment tsunami has started. Today’s announcement that over 3.2 million Americans filed for unemployment insurance last week confirms my worst fears. This number does not even include people who could not file since states’ websites have been crashing due to unprecedented numbers of applicants trying to file, those who do not know that they qualify for UI, self-employed individuals no longer working or part-time workers.

cont.................


Cost of insuring against European junk debt defaults hits new 8-year high
Reuters

LONDON, March 23 (Reuters) - The cost of insuring against European junk bond defaults jumped over 50 bps to a new eight-year high on Monday, as a rising tide of national lockdowns threatened to overwhelm policymakers’ frantic efforts to cushion what is likely to be a deep global recession.

Markit’s iTraxx Crossover, an index of credit default swaps (CDS) for European junk-rated companies, rose to 725 basis points, its highest level since June 2012.


Here WE go AGAIN.........Welcome Back 2008............AGAIN!!!!!!!!!!!!!!!

Fed Launches Repo Facility To Provide Dollars To Foreign Central Bank

Fed Launches Repo Facility To Provide Dollars To Foreign Central Bank
by Tyler Durden ZeroHedge

With US dealers no longer using the Fed's repo facilities (this morning we had another "no bid" overnight repo with just $250MM in MBS submitted for a $500 billion op) as the Fed soaks up all securities via its aggressive QE which is still buying $75BN in paper each day, perhaps Powell felt a bit unloved and at 830am this morning the Fed unveiled yet another "temporary" emergency liquidity providing facility, this time to foreign central banks, in the form of a repo facility targeting "foreign and international monetary authorities", i.e. foreign central banks which will be allowed to exchange Treasuries held in custody at the Fed for US dollars.

In other words, just a week after the Fed "enhanced" its swap lines with central banks and included a bunch of non G-5 central banks to the list of counterparties, it has found that this is not working - perhaps due to the prohibitive rates on the facility - and is now handing out dollars outright against US denominated securities. We wonder if the central bank uptake will be any higher than the repo facility aimed at US dealers and which is now redundant. Of course, when that fails the Fed can just offer to buy all central bank securities in what even reputable FX strategists now joke is a Fed on full tilt, and intent on buying out all foreign central banks.

And so, just as the financial situation was starting to stabilize, the Fed reminds everyone just how broken everything still is.

cont..............

And in Asia............

The coronavirus pandemic could push 11 million people in Asia into poverty, World Bank warns

The economic fallout from the coronavirus pandemic could drive an additional 11 million people into poverty in East Asia and the Pacific unless “urgent action” is taken, the World Bank warned in a report released Monday.

In the worse-case scenario outlined by the Washington-based financial institution, the region could suffer its sharpest downturn in more than two decades, plunging much of Asia into a prolonged recession.

The bank’s baseline forecast projects that regional growth could slow to 2.1% in 2020, compared to estimated growth of 5.8% in 2019. However, under its worse case projection, the region’s economy could contract by 0.5%, creating the potential for an extended crisis.

In China, the epicenter of the coronavirus outbreak, the bank projected a decline in growth to 2.3% in the baseline forecast for 2020. In the worse case, China’s growth would almost disappear entirely at 0.1%, down from 6.1% in 2019.

Such a reduction would have profound consequences for the global economy. The last time China experienced a shrinking economy was in 1976, when the death of Communist Party leader Mao Zedong ended more than a decade of social and economic tumult inside the country. Unlike then, however, China is now the world’s second largest economy and a primary engine of global growth, meaning that any disruption to its economy will be felt worldwide.

“Significant economic pain seems unavoidable in all countries,” said the report, warning that the entire Asia Pacific region should prepare for “a serious impact” on poverty and welfare, through illness, death, and lost incomes.

The report noted that although the estimates were projections, and could yet change, they served to underscore the scale of potential economic damage and the subsequent need for urgent action.

“All countries in the East Asia and Pacific region and beyond must recognize that, in addition to bold national actions, deeper international cooperation is the most effective vaccine against this virulent threat,” said the report.

In an attempt to mitigate against the economic shock, the World Bank has pledged to provide $14 billion in financial support to developing countries and deploy up to $160 billion over 15 months to protect the poor and vulnerable.

Economic pain in Asia Pacific

Fears of a region-wide recession have grown in recent weeks, as the virus continues to spread throughout much of Asia, resulting in widespread enforced lockdowns, with travel suspended, stores shuttered and factories closed.

The crisis in Asia-Pacific is particularly acute because the region had already spent months dealing with the negative economic effects of the US-China trade war. Economic growth in the region will “decline significantly in all scenarios,” said the report.

Indonesia, Papua New Guinea, and the Philippines will likely be harder hit, while Vietnam, Cambodia, Laos, Mongolia and Myanmar are the few countries expected to see growth — just at significantly lower levels than last year.

These countries will be especially impacted by a drop in tourism over the coming months; in countries like Malaysia or Thailand, tourism revenues make up more than 10% of GDP. International border closures and disruptions in aviation or shipping industries will also pose challenges for manufacturing exports.

Many of these countries already had weak or developing economies — meaning the shock of the coronavirus outbreak could leave millions trapped in dire poverty, defined as income of $5.50 a day or less.

According to the report, the economic fallout would see nearly 24 million fewer people across East Asia and the Pacific escape poverty in 2020 under a baseline scenario. While under the bank’s lower case scenario, poverty is estimated to increase by about 11 million people.

The stark forecast contrasts sharply with the bank’s previous projection prior to the outbreak, that estimated that nearly 35 million people would escape poverty in the region in 2020, including over 25 million in China alone.

The report projected that poverty rates could double in households that are particularly vulnerable, like those linked to manufacturing or tourism.

What needs to be done

The rate and ease of recovery in these places will depend on how quickly the pandemic can be contained, said the report.

That’s why early containment and mitigation measures are key. The report pointed to Singapore and South Korea as examples of effectively containing the virus without severely damaging the economy, and credited their success to high levels of testing, tracking, and quarantine.

These countries learned from previous epidemics like the 2003 SARS outbreak, and invested in disease surveillance and response systems. The sooner other countries can follow suit, the sooner they can get through this and recover, the report said.

Governments will also need to implement a range of measures to soften the blow on their citizens, and prevent a rise in poverty as much as possible. These include subsidies for sick pay, liquidity injections to help small and medium enterprises stay in business, and school feeding or other support for students affected.

Finally, countries must work together and support each other in such dire times. This means keeping global trade open, sharing the supply of key medical products, or even eliminating tariffs on these medical products.

“All countries in the East Asia and Pacific region and beyond must recognize that, in addition to bold national actions, deeper international cooperation is the most effective vaccine against this virulent threat,” the report said.