Premiered on Feb 22, 2023.
In this episode, Alex and Shimon discuss the ongoing bloodbath in the markets, triggered by higher-than-expected inflation numbers. They reference an article by Michael Burry, famous for his bets against the real estate market in 2008. Burry argues that rising energy prices will lead to inflation in everything, such as the soles of shoes or the petroleum used in products like Nikes. The market collapse in 2008 was due to mortgage-backed securities losing the bid with no one buying them; however, the Fed could cut rates drastically to help recover. Alex and Shimon discuss how the long-term market will eventually recover, but the long run may become longer. The duo proposes that inflation expectations drive inflation more than money printing, and the Fed needs to get inflation down for the short term.