--- title: "17 Loan Quotes By Michael Hudson" description: "17 Loan quotes by Michael Hudson. Plus more from Michael Hudson and more Loan sayings from other authors." image: "https://sms4smile.com/quotes/i/e4b/michael-hudson-2134_bail_if-bankers-can-push-the-loans-and-make-m_1851308.png" --- > [If bankers can push the loans and make more profits for the bank, they get paid higher bonuses. They often also get…](https://sms4smile.com/quotes/michael-hudson/if-bankers-can-push-the-loans-and-make-more-profits-for-the-bank-they/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/e4b/michael-hudson-2134_bail_if-bankers-can-push-the-loans-and-make-m_1851308.png) > [When you say "bank," a bank is a building, a set of computers and chairs and things. The bankers are the people…](https://sms4smile.com/quotes/michael-hudson/when-you-say-bank-a-bank-is-a-building-a-set-of-computers-and-chairs/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/1a0/michael-hudson-2134_bank_when-you-say-bank-a-bank-is-a-building-a_2289652.png) > [Mathematically, debts grow exponentially at compound interest. Banks recycle the interest into new loans, so debts grow exponentially, faster than the economy…](https://sms4smile.com/quotes/michael-hudson/mathematically-debts-grow-exponentially-at-compound-interest-banks/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/fdf/michael-hudson-2134_compound-interest_mathematically-debts-grow-exponentially_1022192.png) > [Normally, if someone goes bankrupt, you wipe out the debt and get a fresh start. But that's not permitted with student loans.…](https://sms4smile.com/quotes/michael-hudson/normally-if-someone-goes-bankrupt-you-wipe-out-the-debt-and-get-a/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/eb2/michael-hudson-2134_debt_normally-if-someone-goes-bankrupt-you-wi_470074.png) > [Just like a house is worth whatever a bank's going to lend against it, an education is worth whatever the bank is…](https://sms4smile.com/quotes/michael-hudson/just-like-a-house-is-worth-whatever-a-bank-s-going-to-lend-against-it/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/78c/michael-hudson-2134_availability_just-like-a-house-is-worth-whatever-a-ba_1380403.jpg) > [The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in…](https://sms4smile.com/quotes/michael-hudson/the-aim-of-promoting-low-down-payments-is-to-push-prices-back-up-so/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png) > [There are two definitions of deflation. Most people think of it simply as prices going down. But debt deflation is what happens…](https://sms4smile.com/quotes/michael-hudson/there-are-two-definitions-of-deflation-most-people-think-of-it-simply/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/0a5/michael-hudson-2134_cards_there-are-two-definitions-of-deflation-m_1446713.jpg) > [In housing you have jingle mail and you can walk away and leave the bank holding the bag. In the case of…](https://sms4smile.com/quotes/michael-hudson/in-housing-you-have-jingle-mail-and-you-can-walk-away-and-leave-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/d19/michael-hudson-2134_agency_in-housing-you-have-jingle-mail-and-you_2131228.png) > [Seventy-eight percent of millennials are worried about not having enough good paying job opportunity to pay off their student loans. Seventy-four percent…](https://sms4smile.com/quotes/michael-hudson/seventy-eight-percent-of-millennials-are-worried-about-not-having/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/5b5/michael-hudson-2134_able_seventy-eight-percent-of-millennials-are_3163143.png) > [Education is something that should not be organized on a for-profit basis, because in that case its purpose is not really to…](https://sms4smile.com/quotes/michael-hudson/education-is-something-that-should-not-be-organized-on-a-for-profit/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/728/michael-hudson-2134_bases_education-is-something-that-should-not-b_2441694.jpg) > [The fact that you have government-guaranteed student loans has created a whole new sector in the American economy that didn't really exist…](https://sms4smile.com/quotes/michael-hudson/the-fact-that-you-have-government-guaranteed-student-loans-has/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png) > [Oil now, as a result of the Saudi production, is priced so low that there are not going to be new fracking…](https://sms4smile.com/quotes/michael-hudson/oil-now-as-a-result-of-the-saudi-production-is-priced-so-low-that/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/0a9/michael-hudson-2134_climate_oil-now-as-a-result-of-the-saudi-product_222662.jpg) > [Now, suppose that a homeowner puts down only 3% of their own money or 3.5% for the FHA. That means if prices…](https://sms4smile.com/quotes/michael-hudson/now-suppose-that-a-homeowner-puts-down-only-3-of-their-own-money-or-3/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/78a/michael-hudson-2134_cheaper_now-suppose-that-a-homeowner-puts-down-o_2639692.png) > [Look at Ukraine. Its currency, the hernia, is plunging. The euro is really in a problem. Greece is problematic as to whether…](https://sms4smile.com/quotes/michael-hudson/look-at-ukraine-its-currency-the-hernia-is-plunging-the-euro-is/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/e62/michael-hudson-2134_britain_look-at-ukraine-its-currency-the-hernia_1758882.jpg) > [The current U.S. and Eurozone depression isn't because of China. It's because of domestic debt deflation. Commodity prices and consumer spending are…](https://sms4smile.com/quotes/michael-hudson/the-current-u-s-and-eurozone-depression-isn-t-because-of-china-it-s/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/64c/michael-hudson-2134_commodity_the-current-u-s-and-eurozone-depression_732559.jpg) > [If you have to pay about forty to forty-three percent of your income for housing, you also have to pay fifteen percent…](https://sms4smile.com/quotes/michael-hudson/if-you-have-to-pay-about-forty-to-forty-three-percent-of-your-income/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/4fc/michael-hudson-2134_cards_if-you-have-to-pay-about-forty-to-forty_1661965.png) > [So we are in for years of debt deflation. That means that people have to pay so much debt service for mortgages,…](https://sms4smile.com/quotes/michael-hudson/so-we-are-in-for-years-of-debt-deflation-that-means-that-people-have/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Image](https://sms4smile.com/quotes/i/fff/michael-hudson-2134_credit-card_so-we-are-in-for-years-of-debt-deflation_2587168.png) ## Other authors on Loan ## More by Michael Hudson > [Europe is creating the flight of refugees that's tearing it apart politically, and leading rightwing nationalist parties to gain power to withdraw from the…](https://sms4smile.com/quotes/michael-hudson/europe-is-creating-the-flight-of-refugees-that-s-tearing-it-apart/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [This is not really currency that circulates. It's like the old joke about expensive vintage wine. Wine prices will go up and once in…](https://sms4smile.com/quotes/michael-hudson/this-is-not-really-currency-that-circulates-it-s-like-the-old-joke/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Nobody prefers to earn income any more, because that's taxable. Rich people prefer to make capital gains.](https://sms4smile.com/quotes/michael-hudson/nobody-prefers-to-earn-income-any-more-because-that-s-taxable-rich/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Nothing could be better for the economy than to get rid of fracking.](https://sms4smile.com/quotes/michael-hudson/nothing-could-be-better-for-the-economy-than-to-get-rid-of-fracking/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [If you end internet neutrality and permit mergers of the big information technology corporations, that's a form of rent seeking. It's part of today's…](https://sms4smile.com/quotes/michael-hudson/if-you-end-internet-neutrality-and-permit-mergers-of-the-big/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Deflation means a slowdown of income growth. Markets shrink, new capital investment and employment also taper off, so wages decline. That is what's happening…](https://sms4smile.com/quotes/michael-hudson/deflation-means-a-slowdown-of-income-growth-markets-shrink-new/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [What's bad for the frackers usually is good for the rest of the world.](https://sms4smile.com/quotes/michael-hudson/what-s-bad-for-the-frackers-usually-is-good-for-the-rest-of-the-world/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [You could say that the vote to withdraw from Europe is, it's really a vote of the British middle class, the working class, to…](https://sms4smile.com/quotes/michael-hudson/you-could-say-that-the-vote-to-withdraw-from-europe-is-it-s-really-a/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Actually, high housing prices don't help the economy. They raise the cost of living.](https://sms4smile.com/quotes/michael-hudson/actually-high-housing-prices-don-t-help-the-economy-they-raise-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [When economists speak of money, they neglect that all money and credit is debt. That is the essence of bookkeeping and accounting. There are…](https://sms4smile.com/quotes/michael-hudson/when-economists-speak-of-money-they-neglect-that-all-money-and-credit/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [The United States and Europe are in a state of debt deflation, where people and businesses have to pay banks instead of spending their…](https://sms4smile.com/quotes/michael-hudson/the-united-states-and-europe-are-in-a-state-of-debt-deflation-where/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [On the flat tax, the more you compress the tax rates, the more you untax where the income is really made, at the top…](https://sms4smile.com/quotes/michael-hudson/on-the-flat-tax-the-more-you-compress-the-tax-rates-the-more-you/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Income is sucked upward to the creditors, who then foreclose on the assets of debtors. This shrinks tax revenue, forcing public budgets into deficit.…](https://sms4smile.com/quotes/michael-hudson/income-is-sucked-upward-to-the-creditors-who-then-foreclose-on-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Debtor countries may postpone the inevitable by borrowing from the IMF or U.S. Treasury to buy out bondholders. This saves the latter from taking…](https://sms4smile.com/quotes/michael-hudson/debtor-countries-may-postpone-the-inevitable-by-borrowing-from-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [No price is too high to pay to try to make the financial system go on a little bit longer. But ultimately it can't…](https://sms4smile.com/quotes/michael-hudson/no-price-is-too-high-to-pay-to-try-to-make-the-financial-system-go-on/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "ItemList", "@id": "https://sms4smile.com/quotes/about/loan/michael-hudson/#itemlist", "name": "17 Loan Quotes By Michael Hudson", "numberOfItems": 17, "itemListElement": [ { "@type": "ListItem", "position": 1, "item": { "@type": "Quotation", "text": "If bankers can push the loans and make more profits for the bank, they get paid higher bonuses. They often also get stock options. If the bank goes under, they get to keep all of these salaries and options - and the government will bail out the bank. These guys will take their money and run, which is pretty much what they're doing now.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/if-bankers-can-push-the-loans-and-make-more-profits-for-the-bank-they/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/e4b/michael-hudson-2134_bail_if-bankers-can-push-the-loans-and-make-m_1851308.png", "contentUrl": "https://sms4smile.com/quotes/i/e4b/michael-hudson-2134_bail_if-bankers-can-push-the-loans-and-make-m_1851308.png", "url": "https://sms4smile.com/quotes/i/e4b/michael-hudson-2134_bail_if-bankers-can-push-the-loans-and-make-m_1851308.png", "width": 1080, "height": 1080, "caption": "“If bankers can push the loans and make more profits for the bank, they get paid higher bonuses. 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For one thing, they may package these bad loans and sell them off to gullible institutional investors.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/when-you-say-bank-a-bank-is-a-building-a-set-of-computers-and-chairs/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/1a0/michael-hudson-2134_bank_when-you-say-bank-a-bank-is-a-building-a_2289652.png", "contentUrl": "https://sms4smile.com/quotes/i/1a0/michael-hudson-2134_bank_when-you-say-bank-a-bank-is-a-building-a_2289652.png", "url": "https://sms4smile.com/quotes/i/1a0/michael-hudson-2134_bank_when-you-say-bank-a-bank-is-a-building-a_2289652.png", "width": 1080, "height": 1080, "caption": "“When you say \"bank,\" a bank is a building, a set of computers and chairs and things. 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Banks recycle the interest into new loans, so debts grow exponentially, faster than the economy can afford to pay.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/mathematically-debts-grow-exponentially-at-compound-interest-banks/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/fdf/michael-hudson-2134_compound-interest_mathematically-debts-grow-exponentially_1022192.png", "contentUrl": "https://sms4smile.com/quotes/i/fdf/michael-hudson-2134_compound-interest_mathematically-debts-grow-exponentially_1022192.png", "url": "https://sms4smile.com/quotes/i/fdf/michael-hudson-2134_compound-interest_mathematically-debts-grow-exponentially_1022192.png", "width": 1080, "height": 1080, "caption": "“Mathematically, debts grow exponentially at compound interest. 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So the effect is to impoverish many graduates with very high debts.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/normally-if-someone-goes-bankrupt-you-wipe-out-the-debt-and-get-a/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/eb2/michael-hudson-2134_debt_normally-if-someone-goes-bankrupt-you-wi_470074.png", "contentUrl": "https://sms4smile.com/quotes/i/eb2/michael-hudson-2134_debt_normally-if-someone-goes-bankrupt-you-wi_470074.png", "url": "https://sms4smile.com/quotes/i/eb2/michael-hudson-2134_debt_normally-if-someone-goes-bankrupt-you-wi_470074.png", "width": 1080, "height": 1080, "caption": "“Normally, if someone goes bankrupt, you wipe out the debt and get a fresh start. 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So the availability of government-guaranteed student loans has vastly inflated the cost of education, just like it's inflated the cost of housing.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/just-like-a-house-is-worth-whatever-a-bank-s-going-to-lend-against-it/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/78c/michael-hudson-2134_availability_just-like-a-house-is-worth-whatever-a-ba_1380403.jpg", "contentUrl": "https://sms4smile.com/quotes/i/78c/michael-hudson-2134_availability_just-like-a-house-is-worth-whatever-a-ba_1380403.jpg", "url": "https://sms4smile.com/quotes/i/78c/michael-hudson-2134_availability_just-like-a-house-is-worth-whatever-a-ba_1380403.jpg", "width": 1080, "height": 1080, "caption": "“Just like a house is worth whatever a bank's going to lend against it, an education is worth whatever the…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 6, "item": { "@type": "Quotation", "text": "The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in negative equity and fewer people are going to walk away from the mortgages. That will save the from taking a loss on their junk mortgage loans.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/the-aim-of-promoting-low-down-payments-is-to-push-prices-back-up-so/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png", "contentUrl": "https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png", "url": "https://sms4smile.com/quotes/i/b7c/michael-hudson-2134_aim_the-aim-of-promoting-low-down-payments-i_976408.png", "width": 1080, "height": 1080, "caption": "“The aim of promoting low down payments is to push prices back up so that fewer houses are going to be in…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 7, "item": { "@type": "Quotation", "text": "There are two definitions of deflation. Most people think of it simply as prices going down. But debt deflation is what happens when people have to spend more and more of their income to carry the debts that they've run up - to pay their mortgage debt, to pay the credit card debt, to pay student loans.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/there-are-two-definitions-of-deflation-most-people-think-of-it-simply/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/0a5/michael-hudson-2134_cards_there-are-two-definitions-of-deflation-m_1446713.jpg", "contentUrl": "https://sms4smile.com/quotes/i/0a5/michael-hudson-2134_cards_there-are-two-definitions-of-deflation-m_1446713.jpg", "url": "https://sms4smile.com/quotes/i/0a5/michael-hudson-2134_cards_there-are-two-definitions-of-deflation-m_1446713.jpg", "width": 1080, "height": 1080, "caption": "“There are two definitions of deflation. Most people think of it simply as prices going down. But debt…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 8, "item": { "@type": "Quotation", "text": "In housing you have jingle mail and you can walk away and leave the bank holding the bag. In the case of student loans, the debt follows you through life, and the banks or government will turn it over to collection agencies that are not very nice people and can do all sorts of harassing things to you. It's becoming a nightmare.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/in-housing-you-have-jingle-mail-and-you-can-walk-away-and-leave-the/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/d19/michael-hudson-2134_agency_in-housing-you-have-jingle-mail-and-you_2131228.png", "contentUrl": "https://sms4smile.com/quotes/i/d19/michael-hudson-2134_agency_in-housing-you-have-jingle-mail-and-you_2131228.png", "url": "https://sms4smile.com/quotes/i/d19/michael-hudson-2134_agency_in-housing-you-have-jingle-mail-and-you_2131228.png", "width": 1080, "height": 1080, "caption": "“In housing you have jingle mail and you can walk away and leave the bank holding the bag. In the case of…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 9, "item": { "@type": "Quotation", "text": "Seventy-eight percent of millennials are worried about not having enough good paying job opportunity to pay off their student loans. Seventy-four percent can't pay the health care if they get sick. Seventy-nine percent don't have enough money to live when they retire. So, already, we're having a whole generation that's coming on, not only here but also in Europe, that isn't able to get good-paying jobs.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/seventy-eight-percent-of-millennials-are-worried-about-not-having/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/5b5/michael-hudson-2134_able_seventy-eight-percent-of-millennials-are_3163143.png", "contentUrl": "https://sms4smile.com/quotes/i/5b5/michael-hudson-2134_able_seventy-eight-percent-of-millennials-are_3163143.png", "url": "https://sms4smile.com/quotes/i/5b5/michael-hudson-2134_able_seventy-eight-percent-of-millennials-are_3163143.png", "width": 1080, "height": 1080, "caption": "“Seventy-eight percent of millennials are worried about not having enough good paying job opportunity to pay…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 10, "item": { "@type": "Quotation", "text": "Education is something that should not be organized on a for-profit basis, because in that case its purpose is not really to provide an education. It's not to teach students how to get better work, but how to provide banks with a free giveaway opportunity from the government, by making junk loans that are defaulted on. The effect may be to wreck the futures of the graduates that fall for the false promises that are being made.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/education-is-something-that-should-not-be-organized-on-a-for-profit/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/728/michael-hudson-2134_bases_education-is-something-that-should-not-b_2441694.jpg", "contentUrl": "https://sms4smile.com/quotes/i/728/michael-hudson-2134_bases_education-is-something-that-should-not-b_2441694.jpg", "url": "https://sms4smile.com/quotes/i/728/michael-hudson-2134_bases_education-is-something-that-should-not-b_2441694.jpg", "width": 1080, "height": 1080, "caption": "“Education is something that should not be organized on a for-profit basis, because in that case its purpose…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 11, "item": { "@type": "Quotation", "text": "The fact that you have government-guaranteed student loans has created a whole new sector in the American economy that didn't really exist before - private for-profit universities that sell junk degrees that don't help the students. They promise the students, \"We'll help you get a better job. We'll arrange a loan so that you don't have to pay a penny for this education.\" Their pet bank gets them the government-guaranteed loan, and the student may get the junk degree, but doesn't get a job, so they don't pay the loan.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/the-fact-that-you-have-government-guaranteed-student-loans-has/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png", "contentUrl": "https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png", "url": "https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png", "width": 1080, "height": 1080, "caption": "“The fact that you have government-guaranteed student loans has created a whole new sector in the American…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 12, "item": { "@type": "Quotation", "text": "Oil now, as a result of the Saudi production, is priced so low that there are not going to be new fracking investments made. A lot of companies that have gone into fracking are heavily debt-leveraged, and are beginning to default on their loans. The next wave of defaults that banks are talking about is probably going to be in the fracking industry. When the costs of production are so much more than they can end up getting for the oil, they just stop producing and stop paying their loans.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/oil-now-as-a-result-of-the-saudi-production-is-priced-so-low-that/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/0a9/michael-hudson-2134_climate_oil-now-as-a-result-of-the-saudi-product_222662.jpg", "contentUrl": "https://sms4smile.com/quotes/i/0a9/michael-hudson-2134_climate_oil-now-as-a-result-of-the-saudi-product_222662.jpg", "url": "https://sms4smile.com/quotes/i/0a9/michael-hudson-2134_climate_oil-now-as-a-result-of-the-saudi-product_222662.jpg", "width": 1080, "height": 1080, "caption": "“Oil now, as a result of the Saudi production, is priced so low that there are not going to be new fracking…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 13, "item": { "@type": "Quotation", "text": "Now, suppose that a homeowner puts down only 3% of their own money or 3.5% for the FHA. That means if prices go down by only 3%, the house will be in negative equity and it would pay the homeowner just to walk away and say, \"The house now is worth less than the mortgage I owe. I think I'm just going to move out and buy a cheaper house.\" So it's very risky when you have only a 3% or 3.5% equity for the loan. 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That means if prices…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 14, "item": { "@type": "Quotation", "text": "Look at Ukraine. Its currency, the hernia, is plunging. The euro is really in a problem. Greece is problematic as to whether it can pay the IMF, which is threatening not to be part of the troika with the European Central Bank and the European Union making more loans to enable Greece to pay the bondholders and the banks. Britain is having a referendum as to whether to withdraw from the European Union, and it looks more and more like it may do so. So the world's politics are in turmoil.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/look-at-ukraine-its-currency-the-hernia-is-plunging-the-euro-is/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/e62/michael-hudson-2134_britain_look-at-ukraine-its-currency-the-hernia_1758882.jpg", "contentUrl": "https://sms4smile.com/quotes/i/e62/michael-hudson-2134_britain_look-at-ukraine-its-currency-the-hernia_1758882.jpg", "url": "https://sms4smile.com/quotes/i/e62/michael-hudson-2134_britain_look-at-ukraine-its-currency-the-hernia_1758882.jpg", "width": 1080, "height": 1080, "caption": "“Look at Ukraine. Its currency, the hernia, is plunging. The euro is really in a problem. 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Commodity prices and consumer spending are falling, mainly because consumers have to pay most of their wages to the FIRE sector for rent or mortgage payments, student loans, bank and credit card debt, plus over 15 percent FICA wage withholding for Social Security and Medicare actually, to enable the government to cut taxes on the higher income brackets, as well income and sales taxes.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/the-current-u-s-and-eurozone-depression-isn-t-because-of-china-it-s/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/64c/michael-hudson-2134_commodity_the-current-u-s-and-eurozone-depression_732559.jpg", "contentUrl": "https://sms4smile.com/quotes/i/64c/michael-hudson-2134_commodity_the-current-u-s-and-eurozone-depression_732559.jpg", "url": "https://sms4smile.com/quotes/i/64c/michael-hudson-2134_commodity_the-current-u-s-and-eurozone-depression_732559.jpg", "width": 1080, "height": 1080, "caption": "“The current U.S. and Eurozone depression isn't because of China. 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That's all.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/if-you-have-to-pay-about-forty-to-forty-three-percent-of-your-income/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/4fc/michael-hudson-2134_cards_if-you-have-to-pay-about-forty-to-forty_1661965.png", "contentUrl": "https://sms4smile.com/quotes/i/4fc/michael-hudson-2134_cards_if-you-have-to-pay-about-forty-to-forty_1661965.png", "url": "https://sms4smile.com/quotes/i/4fc/michael-hudson-2134_cards_if-you-have-to-pay-about-forty-to-forty_1661965.png", "width": 1080, "height": 1080, "caption": "“If you have to pay about forty to forty-three percent of your income for housing, you also have to pay…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 17, "item": { "@type": "Quotation", "text": "So we are in for years of debt deflation. That means that people have to pay so much debt service for mortgages, credit cards, student loans, bank loans and other obligations that they have less to spend on goods and services. So markets shrink. New investment and employment fall off, and the economy is falls into a downward spiral.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "url": "https://sms4smile.com/quotes/michael-hudson/so-we-are-in-for-years-of-debt-deflation-that-means-that-people-have/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/fff/michael-hudson-2134_credit-card_so-we-are-in-for-years-of-debt-deflation_2587168.png", "contentUrl": "https://sms4smile.com/quotes/i/fff/michael-hudson-2134_credit-card_so-we-are-in-for-years-of-debt-deflation_2587168.png", "url": "https://sms4smile.com/quotes/i/fff/michael-hudson-2134_credit-card_so-we-are-in-for-years-of-debt-deflation_2587168.png", "width": 1080, "height": 1080, "caption": "“So we are in for years of debt deflation. 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