Fears about China's economy and its impact on the global market are rising after the unexpected interest rate cut by the People's Bank of China. This move comes amidst concerns about the country's growing debt and slowing economic growth.

Renowned stock pickers Cathie Wood and Jim Cramer have chimed in on the situation, with Wood highlighting the excessive debt and associated leverage that are now surfacing in China. Cramer, on the other hand, called for the Chinese government to address its debt problem for the sake of future financial stability.

Wood also emphasized that the mainstream narrative about China might be wrong, pointing out that China has been a perennial underperformer in the long run. This sentiment is shared by fund manager Jason Pidcock, who believes that China's long-term performance has been lacking.

Wood further discussed how China is exporting deflation, a phenomenon that economists have not fully grasped. Despite the yuan's 15% depreciation against the dollar in the past year, the country's Producer Price Index (PPI) inflation rate has dropped by 4%, contrary to expected economic principles.

This raises concerns about the strength of China's role in the global supply chain and its ability to drive inflation through currency depreciation.

With conflicting views and economic indicators, the question remains: Are fears of China's economy slowing down justified?

Renowned money manager Michael Burry, famous for his bets against the US housing market prior to the 2008 financial crisis, has taken a bearish stance on the broader market. Burry's Scion Asset Management has positioned itself against the S&P 500 and Nasdaq 100 Index, using put options to express this outlook. The hedge fund purchased put options worth $739 million against the Invesco QQQ Trust ETF and an additional $886 million worth of put options against the SPDR S&P 500 ETF. These put options, which provide the right to sell shares at a predetermined price in the future, reflect a bearish or defensive perspective.

The exact cost of acquiring these put options remains undisclosed, but it is noted that they reflect a significant bet against US markets. Burry gained fame through his astute bets against the US housing market, which were chronicled in the book and movie "The Big Short." Despite his pessimistic outlook, the S&P 500 has advanced approximately 17% year-to-date, while the Nasdaq 100 has surged nearly 39% during the same period.