It’s interesting to see the America's most prominent libertarian economist state that capital markets aren’t adequately funding risky business ventures...
Of course, Cowen is also a market actor. So, I'm not sure where the inconsistency lies.
"Individual actors usually receive most of the benefit and pay most of the cost of their actions, making market failure the exception, not the rule. On the political market individual actors—voters, politicians, lobbyists, judges, policemen—almost never bear much of the cost of their actions or receive much of the benefit. Hence market failure, the exception on the private market, is the rule on the political market."
http://www.daviddfriedman.com/Machinery_3d_Edition/Market%20...
Socialists are concerned with giving more, and libertarians are concerned with taking less, but bureaucrats and plutarchs are aligned in taking more and giving less.
And yet we fight each other...
I've read two of his books. I don't find his views to be very libertarian. He supported bank bailouts.