{The first 15 minutes or so of this episode is a little glitchy, but it gets better} We could have done a full episode about the GameStop affair, but there’s already so many good (and bad) explainers and analysis of that, so let’s talk about the real winners in an economy where the line just keeps going up forever: index funds and passive investment. We talk through the operations of indexation, one of the most important – and hugely overlooked – trends in the modern financial system, and discuss what John C. Coates calls the Problem of Twelve: “The likelihood that in the near future roughly twelve individuals will have practical power over the majority of U.S. public companies.” This meeting of the board of global corporate capitalism is called to order.

Some stuff we reference:

• The Future of Corporate Governance: The Problem of Twelve by John C. Coates https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3247337

• Investment Firms Are the Big Winners of the GameStop Stock Revolution So Far by Edward Ongweso Jr. https://www.vice.com/en/article/y3gepx/investment-firms-are-the-big-winners-of-the-gamestop-stock-revolution-so-far

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Hosted by Jathan Sadowski (twitter.com/jathansadowski) and Edward Ongweso Jr. (twitter.com/bigblackjacobin). Production / Music by Jereme Brown (twitter.com/braunestahl).