--- title: "Meaning & Key Takeaway of: In fact, there's no way that banks can be…" description: "\"In fact, there's no way that banks can be paid everything that they're owed.\" — Michael Hudson" image: "https://sms4smile.com/quotes/i/1af/michael-hudson-2134_banks_in-fact-there-s-no-way-that-banks-can-be_3014942.png" --- # In fact, there's no way that banks can be paid everything… ![“In fact, there's no way that banks can be paid everything that they're owed.” quote by Michael Hudson](https://sms4smile.com/quotes/i/1af/michael-hudson-2134_banks_in-fact-there-s-no-way-that-banks-can-be_3014942.png) [Download](https://sms4smile.com/quotes/i/1af/michael-hudson-2134_banks_in-fact-there-s-no-way-that-banks-can-be_3014942.png) [Open image](https://sms4smile.com/quotes/i/1af/michael-hudson-2134_banks_in-fact-there-s-no-way-that-banks-can-be_3014942.png) > “In fact, there's no way that banks can be paid everything that they're owed.” [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Banks cannot fully satisfy all creditor claims due to systemic financial constraints and legal priorities **In simple terms:** Banks can’t pay everything owed Key Takeaway Recognize limits of financial systems and plan accordingly Themes economics law finance Mood analytical critical Type economic political When to use this quote - bankruptcy - government policy - investment strategy Key Concepts debt hierarchy systemic risk Questions to Reflect On - What alternatives exist for unpaid creditors? - How can policy address systemic shortfalls? A Different Perspective Assumes all banks face identical constraints, ignoring specific contexts ★ ★ ★ ★ ★ No ratings yet [Banks](https://sms4smile.com/quotes/about/banks/) [Banks Paid](https://sms4smile.com/quotes/about/banks-paid-4851222/) [Debt](https://sms4smile.com/quotes/about/debt/) [Facts](https://sms4smile.com/quotes/about/facts/) [Owed](https://sms4smile.com/quotes/about/owed/) [Paid](https://sms4smile.com/quotes/about/paid/) [Paid Owed](https://sms4smile.com/quotes/about/paid-owed-1527905/) [Way](https://sms4smile.com/quotes/about/way/) [Way Banks](https://sms4smile.com/quotes/about/way-banks-4851223/) ## Related quotes > [If people work for me over the years, I expect them to be paid what they're owed, but I don't expect them to be…](https://sms4smile.com/quotes/dolly-parton/if-people-work-for-me-over-the-years-i-expect-them-to-be-paid-what/) [Dolly Parton](https://sms4smile.com/quotes/author/dolly-parton/) > [“that you always paid what you owed—and as quick as you could, before the interest mounted up.”](https://sms4smile.com/quotes/stephen-king/that-you-always-paid-what-you-owed-and-as-quick-as-you-could-before/) [Stephen King](https://sms4smile.com/quotes/author/stephen-king/) > [I have heard so many stories of contractors, and I've met some, too, who worked for Donald Trump, produced the goods and services and…](https://sms4smile.com/quotes/hillary-clinton/i-have-heard-so-many-stories-of-contractors-and-i-ve-met-some-too-who/) [Hillary Clinton](https://sms4smile.com/quotes/author/hillary-clinton/) > [The vast majority of debt that Anglo maintains is owed is strenuously disputed. 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In principle the…](https://sms4smile.com/quotes/michael-hudson/that-s-the-problem-with-the-financial-sector-banks-and-the-financial/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [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…](https://sms4smile.com/quotes/michael-hudson/we-re-at-the-end-of-long-cycle-that-began-in-1945-loading-the-economy/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [When people are running up more and more debt for housing, they call that "real wealth." It exposes what's wrong in the mainstream economics…](https://sms4smile.com/quotes/michael-hudson/when-people-are-running-up-more-and-more-debt-for-housing-they-call/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Oil now, as a result of the Saudi production, is priced so low that there are not going to be new fracking investments made.…](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/) ## 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. 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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/) [Explore all 184 Michael Hudson quotes ](https://sms4smile.com/quotes/author/michael-hudson/) ## More Banks quotes > [What we prefer to do is operate our investment bank in a way that is like what investment banks used to be, which is…](https://sms4smile.com/quotes/warren-stephens/what-we-prefer-to-do-is-operate-our-investment-bank-in-a-way-that-is/) [Warren Stephens](https://sms4smile.com/quotes/author/warren-stephens/) > [We now have power under the Dodd-Frank legislation to break up banks. And I've said I will use that power if they pose a…](https://sms4smile.com/quotes/hillary-clinton/we-now-have-power-under-the-dodd-frank-legislation-to-break-up-banks/) [Hillary Clinton](https://sms4smile.com/quotes/author/hillary-clinton/) > [“Ever notice how the same politicians who claim to be against trickle-down economics have no problem bailing out banks and other politically connected businesses?”](https://sms4smile.com/quotes/colin-m-mcgroarty/ever-notice-how-the-same-politicians-who-claim-to-be-against-trickle/) [Colin M. McGroarty](https://sms4smile.com/quotes/author/colin-m-mcgroarty/) > [My nightmare scenario is that the government saves Citibank once again, as well as the other banks, and business resumes as usual. Then, the…](https://sms4smile.com/quotes/nassim-nicholas-taleb/my-nightmare-scenario-is-that-the-government-saves-citibank-once/) [Nassim Nicholas Taleb](https://sms4smile.com/quotes/author/nassim-nicholas-taleb/) > [“The rich run a global system that allows them to accumulate capital and pay the lowest possible price for labour. The freedom that results…](https://sms4smile.com/quotes/charles-moore/the-rich-run-a-global-system-that-allows-them-to-accumulate-capital/) [Charles Moore](https://sms4smile.com/quotes/author/charles-moore/) > [With post offices and postal workers already on the ground, USPS could partner with banks to make a critical difference for millions of Americans…](https://sms4smile.com/quotes/elizabeth-warren/with-post-offices-and-postal-workers-already-on-the-ground-usps-could/) [Elizabeth Warren](https://sms4smile.com/quotes/author/elizabeth-warren/) > [Much of what Germany and France have done in the rescue of Greece has also helped German and French banks, who for a long…](https://sms4smile.com/quotes/mario-monti/much-of-what-germany-and-france-have-done-in-the-rescue-of-greece-has/) [Mario Monti](https://sms4smile.com/quotes/author/mario-monti/) > [The world needs banking but it does not need banks.](https://sms4smile.com/quotes/bill-gates/the-world-needs-banking-but-it-does-not-need-banks/) [Bill Gates](https://sms4smile.com/quotes/author/bill-gates/) > [Banks are the temples of America. This is a holy war. Our economy is our religion.](https://sms4smile.com/quotes/giannina-braschi/banks-are-the-temples-of-america-this-is-a-holy-war-our-economy-is/) [Giannina Braschi](https://sms4smile.com/quotes/author/giannina-braschi/) > [In the old days we were the challenger brand competing against the big banks, but today I go round the world and I sit…](https://sms4smile.com/quotes/lloyd-dorfman/in-the-old-days-we-were-the-challenger-brand-competing-against-the/) [Lloyd Dorfman](https://sms4smile.com/quotes/author/lloyd-dorfman/) > [“The kind of data and the data-analytical perspective privy to banks is quite unique to banks.”](https://sms4smile.com/quotes/hendrith-vanlon-smith-jr-ceo-of-mayflower-plymouth/the-kind-of-data-and-the-data-analytical-perspective-privy-to-banks/) [Hendrith Vanlon Smith Jr, CEO of Mayflower-Plymouth](https://sms4smile.com/quotes/author/hendrith-vanlon-smith-jr-ceo-of-mayflower-plymouth/) > [My father, Cecil Banks Mullis, and mother, formerly Bernice Alberta Barker, grew up in rural North Carolina in the foothills of the Blue Ridge…](https://sms4smile.com/quotes/kary-mullis/my-father-cecil-banks-mullis-and-mother-formerly-bernice-alberta/) [Kary Mullis](https://sms4smile.com/quotes/author/kary-mullis/) > [If your only arbiter of anything is money, really you should... go and rob banks.](https://sms4smile.com/quotes/bruce-dickinson/if-your-only-arbiter-of-anything-is-money-really-you-should-go-and/) [Bruce Dickinson](https://sms4smile.com/quotes/author/bruce-dickinson/) > [No paper trail means no banks. And no banks means cash houses. -Mia](https://sms4smile.com/quotes/fast-five/no-paper-trail-means-no-banks-and-no-banks-means-cash-houses-mia/) [Fast Five](https://sms4smile.com/quotes/author/fast-five/) > [I did something that challenged the banking world. Conventional banks look for the rich; we look for the absolutely poor. All people are entrepreneurs,…](https://sms4smile.com/quotes/muhammad-yunus/i-did-something-that-challenged-the-banking-world-conventional-banks/) [Muhammad Yunus](https://sms4smile.com/quotes/author/muhammad-yunus/) [Browse all 387 Banks quotes ](https://sms4smile.com/quotes/about/banks/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "In fact, there's no way that banks can be paid everything that they're owed.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/michael-hudson/in-fact-there-s-no-way-that-banks-can-be-paid-everything-that-they-re/", "about": { "@type": "Thing", "name": "Banks" }, "@id": "https://sms4smile.com/quotes/michael-hudson/in-fact-there-s-no-way-that-banks-can-be-paid-everything-that-they-re/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/1af/michael-hudson-2134_banks_in-fact-there-s-no-way-that-banks-can-be_3014942.png", "contentUrl": "https://sms4smile.com/quotes/i/1af/michael-hudson-2134_banks_in-fact-there-s-no-way-that-banks-can-be_3014942.png", "url": "https://sms4smile.com/quotes/i/1af/michael-hudson-2134_banks_in-fact-there-s-no-way-that-banks-can-be_3014942.png", "width": 1080, "height": 1080, "caption": "“In fact, there's no way that banks can be paid everything that they're owed.” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Michael Hudson", "item": "https://sms4smile.com/quotes/author/michael-hudson/" }, { "@type": "ListItem", "position": 4, "name": "In fact, there's no way that...", "item": "https://sms4smile.com/quotes/michael-hudson/in-fact-there-s-no-way-that-banks-can-be-paid-everything-that-they-re/" } ], "@id": "https://sms4smile.com/quotes/michael-hudson/in-fact-there-s-no-way-that-banks-can-be-paid-everything-that-they-re/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```