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Ep. 579: Mihir A. Desai Interview with Michael Covel on TRend Following Radio

Michael Covel's Trend Following

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The Problem With Agency Theory in Modern Capitalism

David Frum: How does it happen that capitalism works, which is how do we have a system where we give money to people we don't know and we expect them to take care of it? "A lot of what you observe in capital markets and in finance today is just the principal agent problem playing out," he says. The defining hallmark of modern capitalism is owners are not managers; so I don't get to run Apple. That creates this agency problem, according to Frum.

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