Is OpenAI Too Big to Fail? & Shutdown Takes Step Towards End

Summary

Morning Brew Daily – Episode Summary

Episode Title: Is OpenAI Too Big to Fail? & Shutdown Takes Step Towards End
Date: November 10, 2025
Hosts: Toby Howell, Kyle Hagie (filling in for Neal Freyman)

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Episode Overview

This episode tackles three major business and policy stories:

• Breakthrough developments in ending the historic U.S. government shutdown
• The growing debate over whether OpenAI is "too big to fail," with its sweeping connections across the tech industry
• The Trump administration's proposal to introduce 50-year mortgages to tackle the nation's persistent housing affordability crisis

The show keeps its signature witty, insightful tone, with side discussions on pop culture items like Starbucks' viral "Barista" cups and the Sesame Street–Netflix deal. The episode wraps up by previewing the week ahead in business and politics, including Warren Buffett's final shareholder letter and the start of COP30 in Brazil.

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Key Discussion Points & Insights

1. Government Shutdown Nears Resolution

[02:50–06:40]

• The Senate voted to advance a measure to reopen most federal agencies, potentially ending the record 40-day shutdown.
  • "The breakthrough came after eight Democrats crossed party lines, giving the GOP the votes it needed to move forward." – Toby [02:55]
  • The bill cancels permanent federal layoffs, secures back pay for furloughed workers, funds SNAP through September, and installs new bipartisan budget rules.
  • Lacks the extension of health care subsidies championed by Democrats, drawing progressive criticism.
• The shutdown took a tangible toll:
  • Flight capacity reductions: Cancelled/delayed thousands of flights over the weekend; staffing shortages at the FAA led to significant airport delays (LaGuardia, Newark).
  • Warnings from airline execs of potentially deeper capacity cuts (up to 20%) if the shutdown persisted.
  • Cargo networks (FedEx, UPS) at risk, especially at major logistics hubs (Memphis, Indianapolis, Louisville).
  • Negative impacts: Lower consumer sentiment, muted GDP outlook, the Fed flying "blind" without current government data.
• Markets responded with optimism to the news of potential resolution; futures rose, reflecting hopes for reduced economic uncertainty.
  • "Futures are up bigly right now because investors seem to be betting that any deal, even a partial one, reduces some of this near term economic uncertainty." – Toby [05:25]
• Final hurdles: The bill needs full Senate passage, House approval, and the President’s signature to take full effect.

Memorable Quote:

"It was kind of death by a thousand cuts... once it starts affecting everyday Americans' lives in these very tangible ways, with the holidays coming up, pressure increased to get a deal done."
— Kyle [04:34]

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2. Is OpenAI ‘Too Big to Fail’?

[06:41–10:35]

• Intense debate about OpenAI’s scale and financial risk, after OpenAI CFO Sarah Friar floated the possibility of seeking a federal “backstop” on a planned $1.4 trillion in spending over the next eight years.
  • Sam Altman pushes back, saying “If we screw up and can't fix it, we should fail.” [07:43]
  • Government officials insist there's no plan for a bailout — David Sacks states taxpayers would not cover AI risk.
  • Industry watchers fear OpenAI, with its vast network of deals (Nvidia, Microsoft, AMD, Oracle, CoreWeave), is creating an interconnected tech “house of cards” similar to big banks before the 2008 crisis.
  • OpenAI handles billions of queries a day, has ~800M weekly users, and was valued at $500B, but still posted a $12B loss in the last quarter.
  • Concerns focus less on revenue or size alone; it’s about the “interconnectedness” of tech players — if one falls, all could feel the knock-on effects.
  • Some, like Nvidia CEO Jensen Huang, hint at the necessity of state intervention to keep U.S. AI leadership ahead of China.
    • "Nvidia CEO Jensen Huang said... state subsidies for AI infrastructure might be necessary if the US wants to keep its nose ahead of China." – Toby [09:39]
  • Others hold a free-market stance — that if OpenAI were to implode, “another one will be there to take its place.” — summarizing David Sacks' position [10:20]
• The episode underscores the national security angle and the government’s recent willingness to take stakes in strategic tech (e.g., Intel).

Notable Quotes:

"Once funding deals reach such a size, there really is only an insurer of last resort, which is the government."
— Toby [09:24]

"If AWS, Nvidia, Microsoft, Oracle, AMD and OpenAI are all tied together and there is some issue, the government might have to step in — that's what people are afraid of here."
— Kyle [08:42]

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3. Trump Administration Floats 50-Year Mortgages

[10:35–14:40]

• President Trump proposed (via Truth Social) the eventual rollout of 50-year fixed-rate mortgages, confirmed in comments by FHFA director Bill Pulte.
  • Intended to lower monthly payments for families and aid affordability amid record-high mortgage rates and costs.
  • This would require an amendment to the Dodd-Frank Act to permit 50-year terms.
  • Analysis of drawbacks: Lower monthly payments, but much higher lifetime interest payments, much slower equity accumulation, and likely upward pressure on home prices.
  • "You are going to be locked into debt probably well into retirement... It actually could inflate housing prices because if you lower monthly payments, you allow buyers to borrow more, which actually ends up bidding up prices." — Toby [13:28]
  • Policy addresses demand side (making it easier for people to buy) rather than supply side (increasing housing stock).
  • “Lock-in effect” keeps people with pre-2022 cheap mortgages from moving, further freezing the market.

Takeaways:

• Hosts are skeptical about long-term benefits, seeing it as a possible “poor trade-off.”
• Likely to be hotly debated, but uncertain if it will be implemented.

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4. Winners of the Weekend

[16:40–22:35]

Sesame Street’s Netflix Revival [16:40–19:52]

• Netflix rescues Sesame Street for its 56th season after HBO Max did not renew.
• The relaunch features a streamlined cast and more music, reflecting new research into how children learn.
• Netflix says kids/family programming is now 15% of all viewing, making this a key strategic win.
  • "As a recently new father, I do want to get your thoughts... is Sesame Street still in the rotation for kids?...this story has again made me bullish on Sesame Street." — Toby & Kyle [19:13–19:52]

Starbucks Barista “Bear-rista” Cup Craze [19:54–22:09]

• Starbucks’ bear-shaped “barista” glass cup ($29.95) achieves viral status, with early morning lines, instant sellouts, and resales up to $500.
• FOMO-driven collectibles craze leads to customer chaos, short supply, and even altercations.
  • "It's see-through, you can see your coffee in it... people are literally bloodying themselves going into stores." — Toby [21:08]
  • Resale market includes DIY versions using honey bottles and straws.

Business Model Reflection

• These “limited drop” strategies drive foot traffic and hype but can backfire if supplies are too short or perceived as unfair.
  • "It's a pretty risky strategy... when it gets this big, making sure people feel like it's fair, making sure there's enough inventory, making sure that people aren't mad in the comments and saying 'I'm never coming to Starbucks again' can be difficult." — Kyle [22:09]

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5. The Week Ahead: What's Next?

[22:35–25:56]

• Warren Buffett’s Final Shareholder Letter: Anticipated end-of-an-era message as Buffett steps down from Berkshire Hathaway.
  • Hosts reflect on the value and influence of his annual letters.
  • "The letters are fantastic. I encourage everyone to read them... it's a little bittersweet." — Kyle [23:14–23:34]
• COP30 Climate Summit in Brazil: Return to the Amazon, focus on accountability, rainforest protection, climate finance disputes.
  • Notable U.S. absence this year; hosts wonder if global momentum can be revived.
• Shutdown Impact on Economic Data: If unresolved, major reports (CPI, PPI, retail sales) won’t be released, making Fed decisions even more “foggy.”
  • "The Fed is continuing to fly by blind without the data it needs to make informed decisions." — Toby [05:51]; echoed later [25:14]
• Veterans Day: Market closures on the horizon. Special interview episode (Michael Lewis) to drop in lieu of normal show.

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Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote/Comment | |-----------|---------|---------------| | 04:34 | Kyle | "It was kind of death by a thousand cuts... once it starts affecting everyday Americans' lives in these very tangible ways, with the holidays coming up, pressure increase to get a deal done." | | 07:43 | Sam Altman (quoted by Toby) | "If we screw up and can't fix it, we should fail." | | 08:42 | Kyle | "If AWS, Nvidia, Microsoft, Oracle, AMD and OpenAI are all tied together and there is some issue, the government might have to step in — that's what people are afraid of here." | | 09:24 | Toby | "Once funding deals reach such a size, there really is only an insurer of last resort, which is the government." | | 09:39 | Toby (quoting Jensen Huang) | "Nvidia CEO Jensen Huang said... state subsidies for AI infrastructure might be necessary if the US wants to keep its nose ahead of China." | | 13:28 | Toby | "You are going to be locked into debt probably well into retirement... It actually could inflate housing prices because if you lower monthly payments, you allow buyers to borrow more, which actually ends up bidding up prices." | | 21:08 | Toby | "It's see-through, you can see your coffee in it... people are literally bloodying themselves going into stores." | | 23:14 | Kyle | "The letters are fantastic. I encourage everyone to read them... it's a little bittersweet." |

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Timestamps for Key Segments

• [02:50] – Government shutdown measure advances in Senate
• [06:41] – OpenAI “too big to fail?” debate begins
• [10:35] – 50-year mortgage proposal explained and debated
• [16:40] – Winners of the Weekend
  • [16:40] Sesame Street’s Netflix revival
  • [19:54] Starbucks “Barista” cup craze
• [22:35] – The week ahead: Buffett, COP30, shutdown data impact
• [25:56] – Special Michael Lewis interview preview, closing

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Tone & Language

• Witty, conversational, and savvy — the hosts combine deep business insights with relatable analogies and banter.
• Sharp skepticism of government/corporate messaging but balanced with clear-eyed analysis.
• Insert personal touches (binge TV conflicts; parenting angles; meme references) without losing sight of the main news items.

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Summary

This episode delivers a rapid-fire, insightful, and entertaining rundown of pivotal economic and cultural developments: a major step in ending the U.S. government shutdown, the mounting debate about the systemic risk posed by OpenAI and America’s top tech giants, and whether ultra-long mortgages are a real fix for the housing crisis—always with a dose of trademark Morning Brew wit. It’s essential listening for those tracking the intersection of business, technology, and policy.

Transcript

[A]

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[B]

Good morning Brew Daily Show. I'm Toby Howell.

[C]

And I'm Kyle Hagie.

[B]

Today it's the beginning of the end of the government shutdown and why.

[C]

There's a hot new collectible item, but you'll need to find a Starbucks that still has them in stock.

[B]

It's Monday, November 10th. Let's ride. Happy Monday everyone. We got Kyle in the house today because Neil's away on vacay. Now on Friday show before the weekend, Neil gave a hint as to where he went because he cannot resist a game. That hit was he is traveling to what was once the wealthiest country on earth. With that hint in mind, we asked people for guesses on our Instagram story and we got a lot of bad ones. Iceland was by far the most popular option. So shout out to you guys for your optimism about Iceland's past fortune.

[C]

Yeah, did Iceland like come in the comments on here?

[B]

I have no idea why people were gravitating towards that place. Great spot but. But it sounds like you all need a new hint. And Kyle, I need you to listen and play too because you don't know where Neil is either. Here's your next hint, everyone. Neil texted me saying he's enjoying his seafood and custard tarts. Kyle, any idea?

[C]

I feel like this is a distraction. I don't think Neil actually left. I think he's in studio three. This man's addicted to the grind. I think he's right next door. Toby.

[B]

He's under the desk right now. Actually, he's going to pop up any minute. So everyone ruminate on that and maybe submit some guesses on where you think Neil is to. Now, a word from our sponsor, U.S. bank. If you're anything like Kyle and me, you're probably budgeting carefully so you can stay ahead of the holiday shopping season. The last thing you want is to have to pay for an unexpected bill out of pocket. Introducing the US bank Split World MasterCard, a new type of card that lets you pay later on every purchase.

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[B]

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[C]

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[B]

After 40 days of stalemate, the longest government shutdown in U.S. history is finally showing signs of ending. Last night, as the Steelers and Chargers tossed up a dud on Monday Night Football, The Senate voted 60 to 40 to advance a measure that would reopen most federal agencies through January. The breakthrough came after eight Democrats crossed party lines, giving the GOP the votes it needed to move forward. The bill reverses all permanent federal layoffs from the shutdown, guarantees back pay for furloughed workers, funds snap through September, and establishes new bipartisan budget rules to prevent future shutdowns. Notably, the compromise does not include the extension of health care subsidies that Democrats had been fighting for, sparking backlash from progressives who say that the party caved under pressure. But the shutdown's economic toll, from delayed food assistance to grounded flights, intensified pressure on both parties to finally find an off ramp. Now, this isn't quite a done deal yet. The legislation still needs to clear final passage in the Senate, wind House approval and be signed by President Trump. But for the first time in over a month, Washington appears to have a real path to reopening the government. Kyle the beginning of the end, yeah.

[C]

It feels like some serious progress is being made. Remember, flight capacity was recently reduced by 4% in 40 major hubs, with plans to ramp that up to about 10%. And I think we started to see the effects of that across airports this weekend, US airlines canceled more than 2700 flights on Sunday. In addition, nearly 10,000 flights were delayed. The FAA said staffing shortages at airports were causing average departure delays of about 75 minutes in LaGuardia, obviously a very busy airport, and in Newark. And then earlier Sunday, Sean Duffy warned that US Air traffic could continue to decline if the shutdown persisted and that they might have to cut to 20% of flights. More controllers weren't coming in day to day, up to 15 to 20, he said. We're retiring every single day. And so airline infrastructure, and I think a lot of infrastructure across the country really was starting to feel the effects of the government shutdown kind of death by a thousand cuts, literally. And once it starts affecting I Think everyday Americans lives in these very tangible ways. With the holidays coming up, pressure increase to get a deal done.

[B]

Yeah, and it wasn't just airline passengers that were feeling the pressure, was also airline cargo networks as well. Because those flight reductions also affect, you know, carriers like FedEx or, you know, UPS. So the major hubs are logistics hubs as well. I mean, Memphis, Indianapolis, Louisville, these are places where UPS and FedEx do have their major transportation hubs. So that was also a fear going into the holiday season if those flights were continuing to be delayed. Right now, though, this deal looks like progress is the first time that we've seen maybe a thawing of the tensions between Democrats and Republicans and the market is loving what it's right now. Check this morning. Futures are up bigly right now because investors seem to be betting that any deal, even a partial one, reduces some of this near term economic uncertainty that we've just been living in for so long right now. Now, there is some latent risk here because if this, you know, hints of a deal fall through, then we're kind of right back to square one again, right ahead of, you know, the Thanksgiving travel and retail period right now. But I do think that, you know, economic pressure was just getting ratcheted up too high for things to continue as the status quo. I mean, White House adviser Kevin Hassett warned GDP could turn negative in the fourth quarter if the shutdown persists. Consumer sentiment has fallen to a three and a half year low as households were kind of dealing with the fallout from the shutdown. And the Fed is continuing to fly by blind without the data it needs to make informed decisions. So that combined with all the airline industry stuff that you mentioned at the beginning, just made it so that it was kind of coming to the 12th hour.

[C]

That's right.

[B]

To get done. Moving on. The words too big to fail carry a lot of weight in American capitalism. So it's causing some trepidation that they are being applied to the biggest name in artificial intelligence, open AI. Sam Altman has been in damage control mode over the last few days, rejecting the idea that open AI should ever be too big to fail or seek a government bailout. And after comments from his own cfo, Sarah Fryer, introduced the idea that the company could possibly ask for a, quote, federal backstop on its enormous spending plan. It's not just the size of the spending plan, $1.4 trillion over the next eight years that has industry watchers nervous. It's the interconnectedness of everything. Open Air has inked billions of dollars worth of circular deals, the likes of Nvidia, Microsoft, amd, Oracle and Core Weave designed to help foster its build out. Those promises have ignited fears that the AI sector is evolving into the same sort of systemically intertwined entity that made the banking sector so fragile in 2008. Should one domino fall, it could bring down the whole industry and an economy teetering on the edge with it. Now, people within the government have pushed back on the idea that they would ever step in to help. With White House AI star David Sacks declaring that the taxpayers will never have to fund a bailout for AI, Sam Altman too said, if we screw up and can't fix it, we should fail. Kyle, there's definitely some absurdity in the idea that a company that is yet to turn a profit could already be too big to fail. But perhaps even more absurd is the idea that given AI's broad impact on the economy and stock market, it actually could be.

[C]

Yeah, and I want to think, talk about the scale of OpenAI and ChatGPT just to like set the scene here because I think it's important to understand ChatGPT, the fastest consumer app to reach 100 million active users. It took only two months to reach that feat. Currently it has approximately 800 million weekly users across the globe, routinely handling billions of queries a day. It's valued at $500 billion in October after a secondary shares sell off. Expected revenue is $20 billion annualized though, despite all of that, Walmart for example, they make over $600 billion a year. Google for example, $300 billion a year. So when you're looking at this company only making quote unquote 20 billion a year and, and they lost about $12 billion in the past quarter, that's where people get suspicious of where this $1 trillion plus in spent commitments is going to come from. Now they can say we don't want to be too big to fail. David Sachs can say that there'll be no federal bailout. But I think you hit on the key point here, which is the interconnectedness. If AWS, Nvidia, Microsoft, Oracle, AMD and OpenAI are all tied together and there is some issue like the government might have to step in and that's what people are afraid of here. It's the interconnectedness, it's not necessarily the scale.

[B]

Yeah, it was kind of a foot in the mouth moment for sure fire during this interview because I don't think she necessarily wanted to say that. But then what happened was basically once funding deals reached such a size, there really is only an insurer of last resort, which is the government. There is no one else who can step in. I mean, a 16Z or any venture fund or even a private equity fund can't step in and help backstop $1 trillion in AI spend. Which is why potentially you heard that government idea tossed out. Not everyone is necessarily against it. Nvidia CEO Jensen Huang said on Wednesday that state subsidies for AI infrastructure might be necessary if the US wants to keep its nose ahead of China. He actually caused a massive sell off earlier in the week when he said China is going to win the AI race here. He kind of walked back some of those comments, but that was Jensen kind of saying we might need a government backstop here if we want to win. But David Sacks was basically like, hey, we have five frontier models who are pushing the boundaries of AI in America right now. We don't need to specifically backstop OpenAI. If OpenAI fails, another one will be there to take its place. Which is a very, you know, free market reading of the situation. But you were seeing some people saying there is a national security angle here.

[C]

That's right. And you're dealing with an administration that has shown the ability or interest in backstopping or even taking vested interest in some companies. We had the government taking a 10% share of intel earlier this year, and so there is appetite, whether it's for a specific company or just in general to ensure that. To your point, we're staying ahead of China from a national security perspective when it comes to AI and advanced data centers and infrastructure. So there's probably some interest here. Although to your point, Trump's Azar David Sachs said there's not going to be a federal bailout. It looks like 50, maybe the new 30. And before generation X gets too excited, I'm not talking about age, I'm talking about mortgages. That's right. Over the weekend, President Trump made a post on Truth Social that suggested he wants to introduce a 50 year mortgage. And then Federal Housing Finance Agency Director Bill Pulte confirmed shortly thereafter that this was in the plans. This offering would be in addition to the standard 15 and 30 year mortgages Homeowners in prospective homeowners are used to. Now, the idea is simple in theory. By allowing more time to pay for your home, a 50 year mortgage should drop the monthly mortgage payments a family would have to make. However, it would also likely increase the total amount of money paid over time, slow the rate of equity, build up owners game in their homes, and could increase home prices as more Families now are able to chase after the same amount of supply of homes. Now don't go running to your bank and start asking for a 50 year mortgage because right now this is merely an idea. The Dodd Frank Wall Street Consumer Protection act does not currently allow for 50 year mortgages. So that legislation would have to change for the big 5o to get out into the world. Toby, if this were to pass, it looks like I might be able to pay off a home by the time I'm 82 years old. Pretty exciting stuff.

[B]

You're looking great right now for your age, Kyle. I will say that this is still definitely speculative as you mentioned, but the idea of a 50 year mortgage definitely set up a lot of debate amongst a economists, amongst housing market watchers because you can see right now there's clearly an affordability crisis. I mean mortgage rates have been above 6% for over three years now. Affordability has been out of reach for many buyers. The median U.S. household now spends 39% of monthly income on mortgage payments. So obviously if you are, you know, the government necessarily, you're trying to say how can we make things more affordable? What if we just increase the lifespan of a mortgage to. So as you said, that would likely reduce the monthly payment, puts a little bit more cash back in people's pockets which means they're not spending quite as much as their paychecks on their housing every single month. But it also comes with it a bevy of issues as well because when you're expanding the lifetime of mortgage, you are slowing your equity build up. Most of that money is actually going towards interest payments. You are paying more in interest over time, over the length of the mortgage over. Also you probably have a little less flexibility now. You're going to be locked in to some debt, probably well into retirement as you said 80 year old Kyle had right there. So and it actually could inflate housing prices because if you lower monthly payments, you allow borrowers to buyers to borrow more which actually ends up bidding up prices. So it could be a catch 22 where even though you're lowering the monthly payment, it just might cause housing prices to shoot up.

[C]

Yeah, there's, there's like some limited stuff that the federal government could do quickly on the supply side which is to like increase housing. So they're focusing on the demand side here which is how do we let more people afford homes. But to your point that could also push up home prices. I think affordability was a key point in some of the elections we just saw. It's been a key point for a while now, and that's what the Trump administration is trying to address with this move. The other thing that's tough to get out of is this quote unquote lock in effect where people got very attractive rates pre 2022 or, you know, in 2020 or before. And they don't want to get out of those rates by selling their home and having to get a new mortgage. So it's forced people to stay in their homes and that's where you have this liquidity that's not ramping up here in the housing market.

[B]

Yeah, I think if we had to just put a bow on it, what would a 50 year government backed mortgage actually do? It would lower monthly payments but rise housing prices. It would slow equity build up, make things a little bit less flexible. And so in general, for an affordable policy in the US that's kind of a poor trade off right there. So look to maybe that 50 year idea to be tossed around a few more times. But who knows if it will actually come to fruition. All right, we're going to take a quick break and come back with our winners of the weekend. Marketing your brand these days probably feels harder than finding a good avocado at the grocery store at 5pm so why.

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[B]

Learn more at disney campaign manager.com that's disney campaignmanager.com let's head to our Winners of the Weekend. The segment where Kyle and I pick a story that had a better weekend than the kid who made their Halloween candy supply lasts until mid November. I won the pre show game of knowing where Neil went on vacation, so I am up first and my winner of the weekend is Sesame street because it's back in better than ever. Remember, Sesame street had been without a home after Warner Bros. Didn't renew its deal to show episodes on its HBO Max streaming service. But Netflix swooped in to save Elmo, Cookie Monster and the rest of the gang to air new seasons with the first episode dropping today. Season 56 represents a big evolution for the show too, with a new structure and modern feel to appeal to a new era of kids. There will be a smaller main cast of just four characters following research which shows fewer characters help kids build familiarity. Music will also be highlighted to a greater extent and every episode includes a new song and several will repeat across episodes so kids can learn and sing along. Kyle Sesame street has been losing some cultural relevance for years now as Cocomelon, Bluey and other shows compete for kids attention. Maybe its Netflix debut can help it get its swagger back.

[C]

I think it's going to get its swagger back. Also, we got a shout out. This is the 56th anniversary of Sesame street, so they just paid off their 50 year mortgage six years ago. Pretty exciting. The show premiered on November 10, 1969 and I want to say like you did say, maybe they're losing some cultural relevance. I think they've done a great job of trying to adapt with the times and I think getting on to Netflix is just one of the signs that they're still trying to do that. It's still on PBS but now they have more distribution. You mentioned that a lot of it is research driven, which parents love, and they're adapting the show to fit what the research is showing. So I think they have tried to stay culturally relevant for five plus decades. That's a really hard thing to do. I'm bullish on Sesame Street. Also, some of the best memes online are Sesame street characters I think in the Big Bird meme. So they've done a good job of staying hip.

[B]

It's got staying power for sure. I do think you touched on the right point There that Netflix is probably the more natural home for Sesame street these days. The HBO max was never quite the right place for it because HBO was trying to get more into kids entertainment content, but that platform is not known for kids entertainment content. It just didn't feel right to, you know, have Cartoon Network shows and Sesame street on the same platform that you have, you know, House of Dragons on, for example. So Netflix actually says that kids and family programming now make up 15% of its overall viewing. This is the biggest streamer in the game here. So landing Sesame street just made sense for Netflix right there. But as a recently new father, I do want to get your thoughts on it. Like, is Sesame street still in the rotation for kids? What are you seeing out there? Is it all bluey these days? Or you're still probably a little young for first. Sesame Street.

[C]

I love it. We're reporting live from the field. We tried to avoid putting my daughter in front of the TV too much, but this story has again made me bullish on Sesame Street. So when she's ready, I think I'm going Netflix, Sesame Street. We'll test it out and I'll report back.

[B]

Okay, that's what I like to hear.

[C]

First you had the Stanley Tumblers, then you had the Labu Boos. And now my winner of the weekend is the next hot collectible item. The barista. Donning a green Starbucks beanie and a straw coming out of its head, the barista is a bear shaped glass cup that the Seattle based coffee chain is offering for 2995. Now, the barista was seemingly living in peace until virality hit. The glass cup quickly gained notoriety across social and demand skyrocketed with people waking up at the crack of dawn to line up outside their local Starbucks in hopes of of attain obtaining one. Because of this demand, Starbucks inventory of the barista was strained with some stores running out before a majority of customers could purchase one, leading to angry comments online and in some cases physical fights inside of stores. Now, if you weren't able to welcome the barista into your family, you can find some reselling for as high as $500 on eBay in other secondary markets. But whatever you do, whatever you do, be nice to the barista. He is so dang cute. He didn't, he didn't want the fame.

[B]

Toby, I know these things, okay? Any time one of these cuts or whatever goes viral, you kind of just roll your eyes a little bit because it's just kind of the consumer merch culture that we're in right now. But I will say the bare rista, I think it deserves all the vibe because it is very adorable. You know, it's see through. You can see your coffee into it. Starbucks is known for these, you know, cup drops, but I think this one is, has reached escape velocity. I mean, people are literally bloodying themselves going into stores or lining up before Starbucks even opens. There's been some controversy where people are peering in through the windows and saw employees allegedly stashing some baristas of their own because we are seeing, you know, retail or resale prices skyrocket. I mean, $500 for these things on ebay is a remarkable number right now. And I've also saw some people making DIY baristas, which is you empty out a honey bottle which is shaped like a see through bear and sticking a straw through its head. So I do think, I mean, every time that these trends go viral, you wonder what the staying power of it is. We've seen it with, you know, Trader Joe's tote bags. We've seen it with other Starbucks holiday merch in general. But I don't know, I think the barista's got a little bit of staying power.

[C]

I hope so. In zooming out. I mean, I think the business model of these limited drops is really hard to get right if done correctly. It's amazing. You're driving so many people to your stores. They're getting the barist and they're getting a latte. But when it gets this big, making sure people feel like it's fair, making sure there's enough inventory, making sure that people aren't mad on the comments and saying, I'm never coming to Starbucks again can be difficult. So it is a kind of pretty risky strategy. And, you know, Starbucks is going through it right now.

[B]

Finally, here's what you need to know to stay ahead in the week. Ahead, Warren Buffett is preparing to release his final letter to Berkshire Hathaway shareholders today, marking the end of his extraordinary 60 year run as CEO. Now 95, Buffett says the note will touch on philanthropy, Berkshire and other matters much like his past letters have. Ahead of this release, Berkshire already penned a message warning investors about AI generated deepfakes of Buffett circulating online, which was likely not an issue when he first started investing. With Greg Abel set to take the reins at year's end, this letter is likely the last word for one of the business world's most enduring voices.

[C]

Right? Truly a goat. And I remember growing up my dad would actually have me read the Buffett letters. It was like a really special bonding moment. And we went to the Berkshire Hathaway Conference in Omaha when I was, when I was pretty young. And the letters are fantastic. Like, I encourage everyone to read them. So, you know, thanks, Warren, for all the writing and I'm really excited for this last one. It's a little bittersweet.

[B]

Gosh, I was trying to think about what I was doing growing up. I definitely wasn't. I was probably watching Sesame street, if we're being honest, not reading letters with my dad. Very cool. So, yeah, definitely in the end of an era. The world's biggest climate gathering, COP30, has kicked off in Brazil, the first time the summit has returned to the Amazon since the 1992 Rio meeting birthed the modern UN climate treaty. This year's conference is being cast as a full circle moment, focusing less on a new promises and more on accountability. Promises are nice, but now it's time to dig into whether countries are actually meeting prior pledges like phasing out fossil fuels and keeping warming below 1 1/2 degrees Celsius and spec debates over financing for developing nations, the protection of rainforests, and growing tensions between rich and emerging economies over who bears the cost of climate action.

[C]

Yeah, this one will definitely be something to watch. And there's maybe some tension from the US side of things for COP30 and that we won't be attending this year, which I guess the bright side is we'll save some carbon emissions from not flying down there. But it feels like this is fraying at the edges and hopefully this can revitalize the global community. To stay focused on this challenge, though.

[B]

The government shutdown finally has an end in sight. Economic data scheduled to arrive from the government won't be released if the votes can't be wrangled in time. Impacted reports include the October Consumer Price Index, Producer Price Index, and the monthly US Retail Sales Report, leaving the Fed without visibility into key inflation and spending trends. That missing information has major implications for monetary policy as the central bank prepares for its December 10 meeting amid what Chair Jerome Powell has called driving in the fog conditions.

[C]

Kyle yeah, I think it's just another example of as the government shutdown goes on and on, we start feeling the effects more and more. And so, you know, hopefully we get a deal across the line and we can get back to some data nerds diving deep into it.

[B]

Seriously, it makes our job a little easier, too. Finally, tomorrow is Veterans Day, which means bond markets, banks and government offices will close. The though the stock market will remain open. It also means we won't be in the office recording for you. But we're not depriving you of your mbd. We have a special interview episode dropping that you're going to want to listen to. We got the opportunity to chat with Michael Lewis, the author of Moneyball, the Big Short, and all the other books that somehow made even better movies. Kyle, it is a great listen. Are you tuning in?

[C]

Of course. Of course I'm tuning in. You can't, can't miss Michael. And also, obviously, happy Veterans Day tomorrow and thanks to all the veterans for their service. But I will be at the Michael Lewis interview. No doubt.

[B]

It is a good one. Believe me, you're going to want to catch this one. All right. That is all the time we have today. If you have thoughts on the show or have a guess as to where Neil is, shoot us a message on Instagram @MB. Daily Show let's roll these credits. Emily Milian is our executive producer. Raymond Lu is our producer. Olivia Graham and Olivia Lake are our associate producers. Hair and makeup just emerged by Bruised and Bloody, but with a barista from our local Starbucks. Devin Emery is our president in our show's production of Morning Brew.

[C]

See y' all tomorrow.