The current credit crisis is hardly an example of the failure of capitalism. History shows that it was during the Clinton administration that an agenda of increased home ownership was heavily promoted. The federal government, under Clinton, began pressuring the Mortgage industry including Fannie Mae and Freddie Mac to drastically lower their lending standards. The idea of extending credit to people that have poor income and terrible credit is closer to a socialist agenda than true Capitalism. The same thing happens in education. We have a large portion of our population now that is utterly hopeless when it comes to learning, so the the schools have lowered their standards to accomodate these people. The bottom line is by allowing credit extended to unworthy individuals in the name of "fairness and equality", we are in the current situation we see now.
