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