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Paging Jim O'Neill: It Is Time To Revise The N-11

Tyler Durden's picture


About half a year ago, after it became painfully clear that the BRIC concept was dead (which has since become quite obvious with surging inflation and liquidity tightening across the board, and markets in China, India and Brazil reacting appropriately), the man who was subsequewntly sent to exlie to manage Goldman's cloaca division, the GSAM which carries about the same clout on Wall Street as Bank of Lynch, penned the term "N-11." Supposedly, these were the countries that were expected to carry the world to the next massive leverage induced consumption boom. As a reminder: here are the countries: Bangladesh, Vietnam, Egypt, Iran, Pakistan, Indonesia, Nigeria, Philippines, Mexico, Turkey, Korea. Well... make that N-10 now... And soon to be N-0, as the policies of Jim's drinking buddy, Gen(ocide) Ben, become fully transparent to the developing world. That said, the N-11 list (RIP) is a great indicator of where speculator should be bidding all CDS to the limit up hilt (we jest... obviously CDS has no limit up locks... Unlike rice - which just hit one).

For those who enjoy an after martini lunch laugh, here is our then take on Jim's most original contraption.

Now That Jim O'Neill's BRICs Are A Dud, Here Comes Goldman's Next Straw Man: The N-11

Earlier we reported that
Jim O'Neill has finally capitulated on his China uberalles prediction.
Not a few hours pass, and Goldman is already back to spinning the great
illusory strawman of the next growth "dynamo" - enter the N-11, or the
"the ‘next 11’ emerging economies that—after the BRICs—have the
potential to rival the G7 as a source of global demand and sustained
growth." Because Goldman knows all too well that two wrongs make a much
bigger right. As to which bottom dwellers are supposed to pull America
and the insolvent developed world, prepare to be regaled with the
following brilliant selection of N-11 participants: Bangladesh, Vietnam,
Egypt, Iran, Pakistan, Indonesia, Nigeria, Philippines, Mexico, Turkey,
Korea. Good luck with that Jim: we cant wait for the Non-Ch 11 200
next, or all the countries in the world that don't have a debt/GDP ratio
of over 100%. We are sure that the entire world, ex the developed and
BRIC countries, will pretty soon serve as the economic dynamo to push
the world forward, and beyond the bankruptcy of your heretofore
favorites. We promise that the bears you so enjoy taunting are rolling
in fear at the N-11 onslaught.

From the report:

N-11 economies vary significantly in terms of financial development.
Hence, we have constructed a simple ‘financial development’ score, made
up of seven financial indicators, which suggests a positive relation
with income per capita. Vietnam and Egypt show high levels of financial
development given their income per capita, whereas Mexico and Turkey
(although financially more developed than the smaller N-11 economies)
have the potential to become even stronger in terms of the size, depth
and efficiency of their financial markets. There are important caveats
to bear in mind when interpreting these results, in the form of the many
country-specific factors that have contributed to where these economies
find themselves today compared with their peers.

The N-11 have a
great deal of potential, both collectively and individually. Their pace
of development over the previous decades suggests that they are in a
strong position to capitalise on both market-based and bank based
systems of finance.

For all who have too much free
time on their hands, and can't wait to get their hands on some hot
Iranian assets (and no, no Geiger counter pun here), feel free to read the full report.


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Mon, 01/31/2011 - 15:51 | Link to Comment equity_momo
equity_momo's picture

With the exception of Turkey , that list is a beginners guide to "How to get fked and poor in 3 easy steps" 

Jimmy is an idiotic bulltard when it comes to things high beta and emerging.

Mon, 01/31/2011 - 16:02 | Link to Comment JonTurk
JonTurk's picture

what is the exception of Turkey?

better be careful holding on to your long Turkey position, you can get fked in less than 2 steps.. that is the EM which was most hardly smacked in 2008..

Mon, 01/31/2011 - 16:10 | Link to Comment equity_momo
equity_momo's picture

I have zero exposure but its a country that has demographics and progressive capitalism on its side. The caveat is obviously that land mass South East of it.  I would wait for the mass sell of in global risk over the next few years and then pile into a market like Turkey however.

Mon, 01/31/2011 - 16:30 | Link to Comment TheSettler
TheSettler's picture

No more Long Turkey? But that is my Wife's favorite position....

Mon, 01/31/2011 - 15:54 | Link to Comment apberusdisvet
apberusdisvet's picture

The air is now thicker than ever with bankster talking head/pundit BS; must be a result of Gobal  (s)Warming aka contagion.

Mon, 01/31/2011 - 15:57 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Papua New Guinea is the next 'Tiger' economy according to Goldman Sachs, and will replace incremental lost consumption of developed nations for the next 50 years.

Mon, 01/31/2011 - 16:04 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

I hear "long pig" is making a comeback.

Mon, 01/31/2011 - 16:54 | Link to Comment TruthInSunshine
TruthInSunshine's picture

'Long pork' is stringy and chewy, according to fine young cannibals everywhere.

Mon, 01/31/2011 - 16:04 | Link to Comment mogul rider
mogul rider's picture

woohoo!! Bring it on






yup they have it all

Mon, 01/31/2011 - 16:02 | Link to Comment Horatio Beanblower
Horatio Beanblower's picture

Maybe N-11 was a hit list.

Mon, 01/31/2011 - 16:12 | Link to Comment traderjoe
traderjoe's picture

From Ransquawk:

"US Judge issues ruling health care lawsuit against the Obama health-care reform act unconstitutional"

Mon, 01/31/2011 - 16:17 | Link to Comment Salinger
Salinger's picture

so the lawsuit is unconstitutional?

Mon, 01/31/2011 - 16:12 | Link to Comment Azannoth
Azannoth's picture

Ben Shalom Bernanke is only the lastes jew commiting crimes against humanity (read hier for other examples)

Mon, 01/31/2011 - 16:16 | Link to Comment Salinger
Salinger's picture

you can't make this stuff up

The Large Magellanic Cloud contains many bright bubbles of glowing gas. One of the largest and most spectacular has the name N 11, from its listing in a catalogue compiled by the American astronomer and astronaut Karl Henize in 1956, and is informally known as N11. Close up, the billowing pink clouds of glowing gas make N11 resemble a puffy swirl of fairground candy floss.

Mon, 01/31/2011 - 16:19 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Re Jim O'Neill's call on Nigeria -

He probably got some of those e-mails we get here in Europe directly from the 'Central Bank of Nigeria', who apparently have lots of cash in some accounts, they just need some help transferring it ... that's maybe why they're only in the N-11 and not the G-20.

Here's one of the most inspiring advisors to those Central Bank of Nigeria people - singing star Uzodinma Okpechi, and his hit song, 'I Go Chop Your Dollar' -

Hilarious, great fun, catchy tune - this is what some Nigerians play when they send those '419' e-mails (419 is the relevant Nigerian law code section related to e-mails and getting money):

Mon, 01/31/2011 - 16:35 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Nigeria has civilization's alpha asset.  

Nothing else matters.

Mon, 01/31/2011 - 16:19 | Link to Comment bob_dabolina
bob_dabolina's picture

Jim who?

Mon, 01/31/2011 - 16:21 | Link to Comment gwar5
gwar5's picture

We can put prospects for future real growth to sleep.... pun intended.

I think we're dealing with Mathusian central planners. 

Why print twice as much money when you can just get rid of half the people?

I don't think TPTB like us and this is just their way of telling us to get off the planet.


Mon, 01/31/2011 - 16:22 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

I'll be backing up the truck on the BRICs after this shit blows up.

Mon, 01/31/2011 - 18:09 | Link to Comment RockyRacoon
RockyRacoon's picture

Good luck affording the gas for that truck...

Mon, 01/31/2011 - 16:24 | Link to Comment BorisTheBlade
BorisTheBlade's picture

Owning something in Iran or North Korea wouldn't be such a bad idea if your allocation to those spots is below 1%, Egypt along with Iraq, Afghanistan and Somalia don't seem to be crazy ideas either, just a matter whether you have enough patience to wait for things to settle, 10, maybe 20 years from now.

Mon, 01/31/2011 - 16:29 | Link to Comment Yorick7
Yorick7's picture

I'm no fan of Jim O'Niell, he's over rated and over paid, however he got the BRIC'S call right several years ago and a lot of people made a lot of money off it.  The fact that ZH is now crowing that he is wrong is typical of the BS that has ruined this site.

Mon, 01/31/2011 - 16:47 | Link to Comment Tyler Durden
Tyler Durden's picture

By several years ago, you mean before the 2008 market collapse which caused the Russian, Indian and Chinese stock markets to plunge by far over 50%, correct? Furthermore, we are fairly confident that anyone telling people to buy anything during the bubble rage period made other people money.

Mon, 01/31/2011 - 17:08 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

Just got a free nerf basketball from Allianz with a card attached.  Card reads, "As of 9/30/2010, total cash on the sidelines equaled approximately $9.4 trillion.  Get your clients back in the game."


Mon, 01/31/2011 - 18:11 | Link to Comment RockyRacoon
RockyRacoon's picture

Wonder what part of that $9.4T is offset by debt?  Did they say?

Didn't think so.

Mon, 01/31/2011 - 17:18 | Link to Comment AbandonShip
AbandonShip's picture

Man, any index that includes Pakistan isn't worthy of even being defined.  I visited the country a few years ago when it was actually reasonable, coincidentally also the peak of the Global Bull run.  Now it's just a complete mess, even the remaining educated Pakistanis are looking for the exit(s).   GSAM = 'tards, liars or both

Mon, 01/31/2011 - 17:43 | Link to Comment eureka
eureka's picture

Jim O'Neill is a ham, a wanna-be actor. He thinks he is Clive Owen. Alas, poor schmuck, he could never be an actor, he would neither be able to memorize lines, nor stick to them. He simply makes up shit as he goes, and, delusionally, thinks his garbage is great. Fuck Jim O'Neill.

Mon, 01/31/2011 - 17:49 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

"Goldman's cloaca division"

funny stuff

Mon, 01/31/2011 - 18:38 | Link to Comment Zeilschip
Zeilschip's picture

It's basically a list of countries with the biggest populations with high birth rates. The guy is totally braindead.

Mon, 01/31/2011 - 23:02 | Link to Comment asteroids
asteroids's picture

Remember a few years ago when CDS swaps were proved worthless against banks when the FED/Treasurery suspending shorts. I wonder if the same thing will happen to sovereigns.

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