17 Comments
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Nutty Professor's avatar

For those that are new, I started following Garrett in mid May 2025. It took a while for someone with zero prior financial "plumbing" training but I am now fluent to the point I understood that sentence real time (reading this article graded that paper).

This stack and Capital Wave are worth the effort to learn.

Garrett Baldwin's avatar

Thank you Sir… also helps that you’re curious. You ask questions… which I don’t mind answering…

John A George's avatar

Is the 10% reserve requirement of fractional reserve banking another example of rehypothecation?

Garrett Baldwin's avatar

There is no reserve requirement right now :)

But reserve fractional is a whole other fever dream that I can go into…

John A George's avatar

Yeah, I know it's a complicated scam, which seems to be SOP for any government entity.

John A George's avatar

Although, having said that, the Federal Reserve is as much a government entity as is Federal Express.

Lee Berryman's avatar

If you really want to know what the Federal Reserve is, read "The Creature from Jekyll Island". Whatever you thought before, it is far, far, far worse.

J. Dough's avatar

An excellent post! Thank you for explaining :-)

Nelson Rowe (submariner)'s avatar

How about the Sprott ETFs

COPP and SETM ? Relatively new but interesting. I don’t like their fees though, seem a little on the high side 😉.

Ben Joslin's avatar

Capital Wave? Point in the right direction to find this post please. Yes, I looked!

Garrett Baldwin's avatar

It’s on the main Substack site. Capital Wave is the paid edition of this letter that comes out each weekday morning

Stephen Kline's avatar

Really enjoyed the conversation on the compound. And loved this explanation on the repo market and rehypothecation!

Ridethewave's avatar

Interesting but how as a retail investor should I act and when on these data points

Garrett Baldwin's avatar

We talk about that in Capital Wave. My outlook that came out yesterday focused on a brewing shift toward defensives and metals

Doug's avatar

GARRETT, its a 30 YEAR bond, not a 30 DAY bond, geeez....

Garrett Baldwin's avatar

Yes… sorry. You get a free month

Martin Vyskocil's avatar

Thanks for explaining, now it makes so much more sense