The US government shutdown is expanding: Today, the FAA officially began cutting 700 flights PER DAY across 40 airports. Airports are now facing a shortage of 3,500 air traffic controllers with 4+ MILLION passengers impacted. What happens next? Let us explain.

Nov 7, 2025 · 2:58 PM UTC

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Today, the US government shutdown officially enters day 38. This marks the longest shutdown in US history and nearly 5 TIMES the average. But, today also marks the first day that the shutdown has gone "mainstream." The FAA has announced flight cancellations beginning today.
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Below is a map of the 40 airports impacted. More than 700 US flights were canceled as of 9 AM ET today. The FAA announced that 10% of flights may be canceled until the end of the shutdown. So far, 4 MILLION travelers have been impacted by cancellations and delays.
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As the shutdown drags on, the economic impact is compounding. Moody's estimates that the shutdown is now costing the US $30 billion PER WEEK. If the shutdown lasts until the end of this month, the total cost could exceed $250 billion. Never in history has this happened.
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On top of this, SNAP benefits are being delayed. SNAP is the largest federal food assistance program in the US. Currently, 42 million Americans are still waiting on aid from the federal government. The average monthly benefit is ~$250 per person for a total of $100B/year.
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The question becomes, will the government shutdown last until Thanksgiving? If so, as many as 30% of the ~5.8 million travelers could be impacted by delays and cancellations. This could impact up to ~2 million travelers with the total nearing 10 million by December 1st.
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The US government shutdown is now expected to last through November 18th. This has moved up from the December 1st expectations seen at the beginning of this week. However, multiple attempts to reopen the government have failed. We believe November 18th is optimistic.
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The stock market is beginning to react. Currently the S&P 500 is on track to fall -3% this week. This marks a -$1.7 trillion drawdown in market cap as concerns over the shutdown are growing. Markets are pricing-in a prolonged disruption of commerce in the US.
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Meanwhile, total US debt is rising by an average of +$17 billion PER DAY during the shutdown. Yesterday ALONE, US debt surged +$45 billion in a single day. We are officially less than 5% away from hitting a record $40 trillion in US debt. Deficit spending is out of control.
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This week, volatility has returned as uncertainty continues to grow. The macroeconomy is shifting and stocks, commodities, bonds, and crypto are investable. Want to receive our premium analysis? Subscribe to access our premium analysis below: thekobeissiletter.com/subscr…

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Multiple large cap technology stocks are now down over 10% on the week. Nvidia has erased -$550 billion of market cap as trade uncertainty returns. We must end the shutdown and restore stability. Follow us @KobeissiLetter for real time analysis as this develops.
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Replying to @KobeissiLetter
Shutdown highly likely to be resolved within next 7 days.
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When the bull case is a 45 day government shutdown, you know something went wrong.
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Replying to @KobeissiLetter
so americans will have to take trains. big deal.
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Replying to @KobeissiLetter
😂😂 we still backed up from last shut down We going to be years behind lol 😆 smell like a very long bear market
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Replying to @KobeissiLetter
The next few weeks will be critical for both travelers and markets.
Replying to @KobeissiLetter
The impact of the government shutdown is becoming very tangible: significant flight cuts, staff shortages, and millions of passengers affected. In the short term, this increases market uncertainty and economic friction. For long-term investors, the focus should remain on fundamentals, policy direction, and liquidity. Understanding macro risks helps guide strategy, but shouldn’t be the sole driver of trades.
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Replying to @KobeissiLetter
This is fine 😐
truth seeker 💼 🔥
 @TeslaTomMY1
Nov 7
Replying to @unusual_whales
Bullish for the airlines cancelling as many money losing half empty flights as they can
Replying to @KobeissiLetter
Your thread is everybody's favorite! #TopUnroll threadreaderapp.com/thread/1… 🙏🏼@Adrian96z for 🥇unroll

Thread by @KobeissiLetter on Thread Reader App

@KobeissiLetter: The US government shutdown is expanding: Today, the FAA officially began cutting 700 flights PER DAY across 40 airports. Airports are now facing a shortage of 3,500 air traffic...

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Replying to @KobeissiLetter
Free market would work, but things run by government unfortunately can't. Traffic controllers employed by FAA is a wtf/socialistic thing.
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Replying to @KobeissiLetter
The sky isn’t falling. It’s being grounded on purpose. 700 flights cut per day. Thousands of air traffic controllers sidelined. Millions stranded in limbo. This isn’t about logistics. It’s leverage. • Starve the system • Blame the gridlock • Reset the terms of control When the planes don’t fly, Commerce halts. And chaos becomes currency. — The Master Builder @KingsProtocol
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Replying to @KobeissiLetter
Maybe if Washington spent less time playing partisan games and more time managing the basics, Americans wouldn’t be paying the price every time the government stumbles.
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Replying to @KobeissiLetter
SHUTDOWN SHOCK: THE WEEK IT GOT REAL Day 38. Longest in US history. The ripple just hit the runway, the pantry, and the tape. Facts that move markets: • FAA cutting about 700 flights per day across 40 airports. • Controller gap ~3,500. Up to 10% of flights at risk. • 4 million travelers already disrupted. Thanksgiving air travelers ~5.8 million. As many as 30% could be delayed or canceled if this persists. • Moody’s puts the hit near $30B per week. Run it to month end and the tally can top $250B. • SNAP payments delayed. Forty-two million Americans rely on roughly $250 per month. • Equities pricing it in. S&P tracking about −3% on the week. Mega-cap tech erased hundreds of billions. • Federal worker jobless claims spiked more than 1,200%. • Debt climbed roughly $17B per day during the shutdown, with a +$45B single-day jump. The $40T line is in sight. Mechanism: Air grid snarls cut travel and commerce. Delayed benefits sap demand. Market cap falls tighten financial conditions. Rising deficits amplify the feedback loop. This is not theater. It is systems dynamics. What to watch next: Flight completion rates. TSA wait times. Federal claims. SNAP backlog resolution. Credit spreads and VIX. Odds of a deal around Nov 18. Bottom line: End the shutdown. Restore ATC staffing and benefits processing now. Every additional week is another $30B burned, more families without food assistance, and a larger compounding hit to trust, safety, and growth.
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Replying to @KobeissiLetter
It's almost like we shouldn't be reliant on the government for so many essential things...
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Replying to @KobeissiLetter
Seen it before. Feels like when shift coverage falls apart and nobody shows up for register duty.
Replying to @KobeissiLetter
Flight cuts highlight liquidity freeze in transport sector. How long until full reopening?
Replying to @KobeissiLetter
They can always find money for a new war in Ukraine. But they'll ground the entire country to pass their next trillion-dollar spending bill.
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Replying to @KobeissiLetter
So 4 million passengers paying the price for Congress doing nothing...sounds about right.
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Replying to @KobeissiLetter
We need to replace every since person in congress.
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Replying to @KobeissiLetter
When government reopens and the workers go back to work, they'll say "Look at all the jobs we created!"
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Replying to @KobeissiLetter
a civilization cannot scale if the sky itself becomes a bottleneck.
Replying to @KobeissiLetter
What a mess
Replying to @KobeissiLetter
It´s time to get this over
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Replying to @KobeissiLetter
Just a matter of time
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Replying to @KobeissiLetter
Disgusting
Replying to @KobeissiLetter
DEMOCRATS will block everything, because it "hurts" Trump. Why would they open, Democrats hate you. This will cause stock market correction, no doubt. Will last into next year! Nobody is saying this...
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Replying to @KobeissiLetter
🫣
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