Cool Video: CNBC Squawk Box: EM Pressure, but Crisis is Localized

This Cool Video is from the discussion I participated in on CNBC's Squawk Box (Jan 27). I argued that the most acute pressure on emerging markets was home grown, and, while there was contagion elsewhere, it is not a 1998-1998 emerging market crisis.  Many emerging market countries have amassed large currency reserves that act like a self-insurance fund.  On the other hand, Argentina and Turkey, for example, have drawn down their reserves aggressively and this has left them particularly vulnerable.   Money has been leaving emerging markets, as an asset class for several months and the adjustment does not appear over.   While there have been some structural reforms, liquidity probably is a better explanatory variable for the rally in emerging markets, as an asset class.