Business Quote by 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.”
About This Quote
Source Speech: Interview on financial trends, 2020
Banks are shifting from traditional lending to high‑risk speculative finance, targeting those who bet on derivatives.
In simple terms: Banks now favor risky gambling on derivatives over regular loans.
Key Takeaway
Recognize the risk of speculative finance.
Themes
finance
risk
speculation
Mood
cautious
critical
Type
analytical
commentary
When to use this quote
- investment strategy
- risk assessment
- policy analysis
- financial regulation
Key Concepts
banking
derivatives
market dynamics
Questions to Reflect On
- What are the long‑term effects of banks favoring speculative markets?
- How can regulators mitigate the risks of this trend?
A Different Perspective
Such a shift can increase systemic instability and expose borrowers to greater loss.
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