Stanley Fischer, poster boy for austerity, leading candidate for Fed vice chairman

In 1997, several East Asian countries had currency collapses and debt crises — something about banks borrowing too much short term money, sound familiar?

The International Monetary Fund (IMF) swooped in to the “rescue” them by imposing austerity. Stanley Fischer was the technocratic #2 and enforcer of those terms. He became the poster-boy for how the IMF and US were imposing harsh terms which forced the end of subsidies to keep food and fuel prices low.

He later said  ”Every place you turn you read the same story, that we came in, that we made things worse,” said Stanley Fischer, ”We frequently get the blame, some of it well-deserved”

The New York Times reported: “Once, the I.M.F.’s critics were largely found in Africa and South Asia, were the fund was often viewed as arrogant; today they include Wall Street’s biggest players and top officials in the most powerful economies of Asia and Europe.”

He is now reported to be the front-runner for the number 2 post at the Fed. He is the second coming of Larry Summers. He would be a terrible choice for the Fed.