The ACID Capitalist Podcast What if AI cuts jobs faster than rates can fall?
8 snips
Nov 8, 2025 This discussion kicks off with a shock as CarMax suffers a 24% decline amid shifting used-car demand. The podcast analyzes how tariffs skew purchasing behavior and create inventory mismatches. Consumer sentiment is at a crisis point, while conflicting job data raises eyebrows. Insights on China's export slowdown and the skepticism around AI capital expenditure take center stage. The conversation also dives into strategies for monetizing volatility through options, highlighting the balance between narrative and financial fundamentals.
AI Snips
Chapters
Transcript
Episode notes
CarMax Crash And Executive Ouster
- Hugh Hendry recounts CarMax's 24% collapse and the CEO's immediate exit after earnings cuts and weak same-store sales.
- He links the drop to a pull-forward in used-car demand ahead of tariffs which left a hole in current sales.
Cobweb Dynamics Amplify Inventory Mistakes
- Hendry explains the cobweb/hog cycle: production and ordering lags create inventory timing errors that amplify booms and busts.
- These lag-driven dynamics make sectors like autos and even toothpaste vulnerably cyclical.
Consumer Sentiment At Crisis Levels
- Michigan consumer sentiment plunged to around 50, levels associated with deep recessions and crises.
- Hendry highlights that sentiment is at historical lows comparable to 2008 and the 1980s high-rate era.