Home / Quotes / Quote by Michael Hudson

Quote by Michael Hudson

“In fact, there's no way that banks can be paid everything that they're owed.”

Quote by Michael Hudson

Author

Michael Hudson is a renowned economist, born in 1939. He has conducted extensive research in the field of economics, particularly in finance, real estate, and debt. Professor Hudson has held teaching positions at several prestigious universities and has authored numerous publications on economic theory and policy. more

You May Also Like

“We're at the end of long cycle that began in 1945, loading the economy with debt. We're not going to be able to get out of it until you write down the debts. But that's what the IMF believes is unthinkable. It can't say that, because it's supposed to represent the interest of the banks.”

Writing Believe Long Ends Able Interest Economy Debt Cycles Unthinkable Imf

Author:Michael Hudson

“There really isn't a recovery, and no signs of it on the horizon, because people have to pay the banks. It's a vicious circle - or rather, a downward spiral.”

People Pay Circles Recovery Horizon Vicious Spirals Vicious Circles Downward Spiral

Author:Michael Hudson

“If you have to pay about forty to forty-three percent of your income for housing, you also have to pay fifteen percent of your paycheck for the FICA for Social Security wage withholding. You have to pay medical care, you have to pay the banks for your credit card debt, student loans. Then you only have about twenty-five or thirty-five percent, maybe one-third of your salary to buy goods and services. That's all.”

“The companies aren't hiring, because consumers don't have enough money to buy the goods and services.”

Enough Company Consumers Goods Hiring Goods And Services

Author:Michael Hudson

“We're in a chronic debt-deflation. There's no way we can recover unless you write down the debts. And that's what the IMF basically is implying (and it was explicit regarding Greece), but its not spelling it out, because that's not what can be said in polite company.”

Way Writing Said Company Debt Polite Greece Explicit Spelling Implying Imf Deflation

Author:Michael Hudson

“Small banks that lend to consumers are fine.”

Author:Michael Hudson

“Most banks - with Deutsche Bank at the top of the spectrum here - have decided that they can't make money lending to barrowers anymore, so they're going to the second business plan: They lend money to casino capitalists. That is, to people who want to gamble on derivatives.”

People Want Plans Decided Making Money Capitalist Spectrum Gamble Lending Casinos Derivatives Business Plan

Author:Michael Hudson

“A derivative is a bet on whether a stock, or a bond or a real estate asset, is going to go up or down. There's a winner and a loser. It's like betting on a horserace.”

Real Winner Assets Loser Estates Betting Derivatives

Author:Michael Hudson

“What's the best gamble in the world, right now? Its betting that Deutsche Bank stock is going to go down. Short sellers borrowed money from their banks to place bets that Deutsche Bank stock is going to go down. Now, it's wringing its hands and saying, "Oh the speculators are killing us." But it's Deutsche Bank and the other banks that are providing the money to the speculators to bet on credit.”

World Hands Right Now Killing Credit Providing Gamble Borrowed Sellers Betting Speculators Borrowed Money

Author:Michael Hudson

“Business, numbers, negotiations, all that stuff I wouldn't go near.”

Stuff Numbers Negotiation

Author:Donna Karan