But then why do we bail out the peso when we think it's getting weak --- if weak is good then wouldn't Mexico be better off with the peso going low? Why is it good for the dollar to lose it's value but not for liras or pesos to lose their value?
It's good if we want to sell American products abroad; it's bad if you want to buy a product from the Euro-Zone.
Basically we bailed out their entire banking system. There is no banking crisis here so it's wrong to compare the two situations.
Mexico imports most of its durable goods, so a strong peso helps them.