Currency Crisis Unfolds

The Turkish Lira and Argentine Peso have gone into free fall. The Argentine Peso dropped over 25% in just two days.

Last year Argentina sold $2.75 billion dollars worth of 100-year bonds at a yield of 7.9%. This is the same country that defaults or hyper inflates its currency about once every 15 years. Investors thought it was a good idea to lend the Argentina government their money for 100 years. So much for the school of rational expectations.
Europe never recapitalized its banking system. There banking system just limps along. The bureaucrats in Brussels put band aids on the ship whenever they see a leak. This is causing a capital flight to the USA. I expect this will continue to put upward pressure on the US dollar, US stocks and US bonds.