WSJ What's News – Shutdown Nears Record as Crucial Week Begins

Date: November 3, 2025
Host: Caitlin McCabe
Guests: Sen. Tim Kaine, Mike Johnson, Heather Gillers, Chelsea Delaney

Episode Overview

This episode centers on the looming U.S. government shutdown surpassing record length, political standoffs in Washington, scrutiny over the Trump administration’s military actions abroad, and shifting economic realities in both the U.S. and Europe. Key discussions include calls for presidential intervention in budget talks, legal controversy over anti-drug strikes, Warren Buffett's succession at Berkshire Hathaway, and why fiscally disciplined northern European countries now face mounting debt issues.

Key Discussion Points & Insights

1. Government Shutdown Approaches Record Length

• Nears 35 days—on track for the longest ever.

• Main sticking point: Democrats demand a health care deal as a condition for reopening the government.

• Democratic senators urge President Trump to personally engage to resolve the impasse.

• Sen. Tim Kaine (D-VA):

  • Urges Trump to join negotiations.
  • Emphasizes that agreement could come "within hours" if the President is involved.

    "A record if the president engages, we will find a deal, I think within hours." (00:45 – Tim Kaine)

  • Highlights priority: stabilizing health care costs for Americans.

• Republican Strategy:

  • Trump suggested changing Senate rules to bypass Democratic opposition, potentially disrupting bipartisan negotiations.
  • The White House maintains silence on the president's direct involvement.

2. Military Strikes and War Powers Debate

• Controversy: Ongoing U.S. lethal strikes against suspected drug smugglers in the Caribbean and Pacific, conducted without explicit congressional authorization.

• The administration claims the strikes do not qualify as “hostilities” under the War Powers Resolution.

• Bipartisan frustration: Lawmakers from both parties demand legal justification.

• Sen. Mark Warner (D-VA), Senate Intelligence Committee:

  • Criticizes secretive briefings and lack of transparency.

    "How do I answer the families of those sailors about whether this operation is even legal? This document needs to be shared with every member of the Senate this week... so that as we get into this discussion about war powers, we've got the basis of how the administration is claiming that it's legal." (03:05 – Tim Kaine quoting Warner)

• GOP House Speaker Mike Johnson:

  • Defends administration, states both parties were briefed.
  • Asserts strikes are "protecting the homeland" and insists info is reliable, though mostly classified.

    "We have exquisite intelligence about these strikes... what the president and the administration are doing is protecting the homeland." (03:31 – Mike Johnson)

• Impact: Around 65 people killed in 15 airstrikes.

3. Global Flashpoint: U.S. Threatens Action in Nigeria

• Trump warns of possible U.S. military intervention and aid suspension over escalating violence against Christians by Boko Haram.
• Nigeria’s president rebuffs the U.S. concerns, stating religious freedom remains a national principle.
• Context: Over 43,000 deaths in Nigeria tied to Boko Haram since 2009.

4. Berkshire Hathaway Succession and Earnings

• Quarterly earnings up 17% due to strong insurance business results.
• Investor uncertainty: Stock lags S&P 500 amid Warren Buffett's coming retirement; Greg Abel to take over.
• Heather Gillers (WSJ):
  • Notes Berkshire’s unique, opaque style may not succeed under new leadership.
  • Raises questions about investor trust and possible need for transparency changes.

    "So one question going into this change in leadership is will those [opaque] practices change? And if they don't change, will investors be just as content with someone new in charge?" (05:17 – Heather Gillers)

5. U.S. Housing Market Pressures and Risky Loans

• High home prices and mortgage rates drive surge in adjustable rate mortgage (ARM) applications (10% of purchases – highest since 2023).
• Many expect rates to drop, though rising rates could increase payments for ARM holders.
• Context: A reminder of risky loan practices reminiscent of those causing the 2008 financial crisis.

6. Europe’s “Role Reversal”: Southern Stability, Northern Strains

Southern Europe’s Comeback

• Former crisis countries (Portugal, Italy, Greece, Spain) now exhibiting fiscal health and robust growth.
• Chelsea Delaney (WSJ):

  "15 years ago these southern European economies... almost broke apart the Eurozone when they had these debt crisis and now they’re doing actually really well." (08:08 – Chelsea Delaney)

  • Southern economies forced into painful but ultimately beneficial reforms during the debt crisis (austerity, labor reform, privatizations).
  • Tourism and new high-value sectors (tech, finance, media) drive expansion.

Northern Europe’s Fiscal Challenges

• Shift: Germany, France, and the UK now struggle with rising debt and slow growth.
• Key factors:
  • German manufacturing and exports hurt by tariffs and competition from China.
  • Impact from Russia’s war in Ukraine—higher energy costs damage industry.
  • Aging populations and large welfare states strain budgets.

    "You have just the size of the welfare states in some of these countries are getting quite large, populations are aging. And so the spending requirements are starting to really weigh on countries like France..." (10:01 – Chelsea Delaney)

Political Obstacles to Reform

• Attempts at raising pension ages or cutting welfare meet strong public resistance.
• Leaders forced to roll back reforms, turn instead to tax increases—fuels political fragmentation.

  "The other option is raise taxes. And I think that's what we're seeing in the UK and France. But it's contributing to the political fragmentation that we're seeing..." (11:14 – Chelsea Delaney)

Notable Quotes & Memorable Moments

• Tim Kaine on urgency:

  "We can find a budget deal that puts us on a path to a health care fix. I don't need all the I's dotted and t's crossed. I just want to be on a path so that people's bills don't spike and I want the president to agree. Stop the wrecking ball." (01:43 – Tim Kaine)

• Mike Johnson on national security:

  "What the president and the administration are doing is protecting the homeland." (03:31 – Mike Johnson)

• Chelsea Delaney on southern Europe’s turnaround:

  "Spain was one of the fastest growing economies in the developed world last year... these are actually really big numbers. So on a growth perspective, they're doing really well." (08:08 – Chelsea Delaney)

Timestamps for Important Segments

• 00:33 – Episode headlines: Shutdown and EU fiscal issues preview
• 01:43 – Sen. Tim Kaine urges President Trump to join shutdown talks
• 02:02 – Trump’s military strikes, admin legal arguments, Sen. Warner’s critique
• 03:31 – House Speaker Mike Johnson defense of administration’s transparency
• 05:17 – Berkshire Hathaway earnings, leadership uncertainty (Heather Gillers)
• 06:00 – U.S. housing market and risky loans resurgence
• 08:08 – Chelsea Delaney on role reversal in European economies
• 10:01 – Problems facing Germany, France, UK explained
• 11:14 – Political resistance to reform and implications for European stability

Tone & Style

• Concise, direct, and neutral reporting in the Wall Street Journal’s signature style.
• Exchanges between host Caitlin McCabe and expert guests keep the tone informative and conversational.

Summary Takeaways

• U.S. shutdown remains unresolved; chances of movement hinge on presidential involvement.
• War powers controversy deepens with bipartisan calls for transparency about military strikes.
• Berkshire’s transition to Greg Abel faces market skepticism.
• U.S. homebuyers are assuming more post-2008 style loan risks as affordability wanes.
• Europe’s south enjoys newfound financial stability after painful reforms, but northern stalwarts now face heavy debt, stagnant growth, and mounting political challenges to fiscal reform.