Oscar the Grouch demonstrates his "poem-writing machine" to Bob and the kids: just write down a word on a card and insert it, and the machine will create a grouchy poem from it. It rhymes "glad" with "mad" and "feel so bad," and it rhymes "hello" with "don't know" and "go". Finally, Bob writes the word "nice" on a card and inserts it, causing the machine to write a non-grouchy poem, to Oscar's dismay. Muppets-Lefty the Salesman wants to sell Ernie an empty box, explaining that he can fill the box with things like a pet mouse (if Ernie had one) and jellybeans (if they rained from the sky). Ernie wants an empty box, but doesn't have any money. However, Bert brings a box of cookies, and Ernie throws the cookies out so he can catch jellybeans from the sky.