I don't blame capitalism for this mess we are in - I blame GREED.
Banks were giving out loans like they were handing out glasses of water! When the time to pays comes around, they are honestly surprised that the individual making $40,000 per year can't afford to pay the mortgage on the $300,000 home?
The individuals getting the loans were stupid! If I were making $40K, I would hardly even be LOOKING at a home that is worth $300K!
The economy went too far based on credit. Everyone decided they could live beyond their means because they didn't have to pay right now - they had credit! It is like the college student that has a credit card, and finds out that they can leave the store with the huge TV without shelling out a dime. But when the bill comes later, you eventually do have to pay for it - with interest.
And don't get me started on the automakers! The idiots went and modified most of their plants to make SUV's because that was where the money was. Nevermind they were counting on oil remaining "low" so that the gas guzzling vehicles would remain popular. It was stupid, impulsive, and very "in the now, to hell with the future" thinking. Hardly a way to run a multi-billion dollar corporation!
As much as it galls me do it, my tax dollars are going where needed - sort of. They should be bailing out the consumers - the homeowners in particular. If they had the money to pay, they would not have such a credit crisis in the banking industry, and it would all be fine in the rest of the economy. But instead they throw money at the reason - not at the problem. It is like throwing water on the match to stop the forest fire after it has raged for a week.
And when the government gives the money to the homeowners in crisis, it should come with the stipulation that they take financial counceling courses, and have a certificate proving completion to keep a low interest loan. Education will be the key to this crisis in the end.