Good morning readers. McDonald's is not clowning around with their latest foray into fashion, teaming up with Crocs for a sizzling new line of fast food-themed footwear. Set to drop on November 14, the collection cooks up a playful mix of clogs and sandals, seasoned with motifs of the famous mascots and the brand's signature red and yellow. Accessorize with a side of fries or a Big Mac charm for a look that says 'I'm lovin' it' from head to toe.

Let’s jump into today’s storylines.

In today’s digest:

• How mezzanine loans are rocking the commercial real estate world

• Headline Hustle: Stellantis to offer salaried employees buyouts, Israeli troops encircle Gaza’s largest hospital, Supreme Court creates code of conduct

• Homer’s NFT fumble

• Pulse Points: What’s Trending

REAL ESTATE

The sky's not falling, but the floors are

Picture this for a moment: You're in an elevator heading to the top of a financial high-rise when suddenly, you're stuck between floors—welcome to the world of mezzanine loans. Just like that awkward elevator ride, the commercial real estate sector is caught in a tight spot, with foreclosures of these risky loans hitting record numbers, making 2023 the year of the great financial squeeze.

In the dizzying heights of commercial finance, mezzanine loans are the daredevils. Not quite a traditional mortgage and not recorded as such, they're the ninjas of the lending world—fast, stealthy, and a bit of a mystery. These loans can be snatched away in foreclosure faster than you can say "market crash," with this year's foreclosure notices already topping the charts. But what's really sending shivers down investors' spines is the surge in interest rates and vacancies, landing a one-two punch that's left the property sector seeing stars.

How did we get here?

Flashback to the gloomy days post-2008 crisis, when big banks got cold feet and tightened their purse strings. Who stepped in? Smaller banks and alternative lenders, dangling the alluring high-interest mezzanine loans. Like bees to honey, this drew in everyone from Blackstone to international players, riding the wave of high yields. Now, as the tide turns and defaults mount, we're getting déjà vu from the pre-2008 shenanigans, where properties are shouldering debts heavier than their own market value.

Why should you care? Because this is more than just a high-stakes game of Monopoly. It's a warning siren for a potential financial storm that could hit the broader market. If the elevator keeps dropping floors, we could all feel the ground shake. And as we watch iconic properties like Margaritaville in Times Square and towering giants in LA tumble into foreclosure, it's clear: this mezzanine muddle could send more than just investors into a freefall.

Headline Hustle

💰️ Stellantis prepares to offer buyouts to US salaried workers. Stellantis, the parent company of Jeep, is waving a financial farewell to approximately 6,400 white-collar veterans in the U.S. as it gears up for an electric future and braces for higher labor expenses. This voluntary buyout —its third within a year—aims to cushion the transition for those eyeing the exit. As the auto industry tightens its belt amidst a rocky economy and hefty EV investments, Stellantis isn't just idling by; it's steering through a historic UAW strike and tentative wage pact with strategic maneuvers, including a $53 billion EV investment spree and a potential retirement golden handshake for union members.

🏥 Israeli forces encircle Gaza’s largest hospital. Israeli troops have encircled Gaza's Al-Shifa Hospital, which they claim doubles as a hidden Hamas military hub—a charge Hamas vehemently denies. Inside, doctors play a grim game of Operation, as critical supplies and electricity are MIA. Meanwhile, Israel's PR machine churns out videos of alleged militant hideouts in hospitals to validate their actions—footage that Hamas has quickly labeled as fake news. In this intense standoff, Gaza's civilians and medical staff find themselves trapped in a dire medley of urban warfare, failing health facilities, and international outcry. Rockets continue to fly, and the power struggle intensifies, leaving the world to wonder where the line between military strategy and humanitarian crisis blurs.

🧑‍⚖️ Supreme Court introduces a code of conduct to address ethics concerns. In a move to polish its tarnished image, the U.S. Supreme Court finally adopted its first-ever code of conduct. This action comes on the heels of unsettling revelations about undisclosed vacations and favors involving some justices. The 15-page code, signed by all current justices, outlines ethical standards and suggests consultation sources for justices, but lacks a formal enforcement mechanism or an ethics office. Critics, like Sen. Sheldon Whitehouse, argue this is a step in the right direction, but without tangible enforcement, it's essentially toothless. This development follows years of debate and scrutiny over the Court's conduct, including recent efforts by Senate Democrats to legislate tighter ethical standards. The document, largely based on existing federal judicial rules but adapted for the Supreme Court's unique role, aims to clarify ethical boundaries but leaves much to individual interpretation. Despite this progress, questions linger about its effectiveness in preventing future controversies.

BUSINESS

NFTs get 'Simpson-ized': A cartoon mirror to a market in freefall

In the latest "The Simpsons" episode, Homer's bright idea to turn himself and Bart into NFTs hits a snag, courtesy of a prophetic pizza cat declaring, "the NFT craze is over." It's a moment that’s both funny and a bit too real for the NFT world. The iconic show, known for its uncanny predictions, might've just nailed the current state of NFTs – a market that's gone from sizzling hot to lukewarm leftovers.

The NFT market, once the Wild West of digital gold rushes, is seeing its sun set. Trading volumes have nosedived by a staggering 89% since the early 2022 heydays. Big shots in the NFT realm, like Yuga Labs, are tightening their belts, and the once-lauded series like the Bored Ape Yacht Club are watching their values tumble from the stratosphere to the basement. Think of NFTs as your favorite band from high school – super cool back then, but now, not so much.

Big picture: In the end, "The Simpsons" might have just delivered a slice of sage wisdom through their satirical genius. The NFT craze, much like Springfield's most famous family, has had its ups and downs, and while the frenzy may have fizzled, the blockchain beat goes on. As for the future of these pixelated prizes? It's as uncertain as Mr. Burns's age, but as any seasoned Springfield observer knows, the show always goes on.

SNIPPETS

Pulse Points

• Elon Musk has announced a significant update to X, focusing on amplifying content from smaller accounts in the For You feed.

• The Workers United union has announced a walkout by thousands of Starbucks employees at numerous locations during the upcoming Red Cup day event, citing concerns over staffing and scheduling.

• Exxon Mobil has begun lithium drilling in Arkansas, aiming to become a significant supplier for electric vehicle batteries in the U.S. by 2030.

• Major U.S. chains like Walmart and Costco, are scaling back self-checkout technology amid increasing customer dissatisfaction.

• Toys R’ Us is making a comeback?

• FTX, the bankrupt crypto exchange, is suing Bybit Fintech and its affiliates to recover $953 million in assets withdrawn just before FTX's collapse in November 2022.

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