a smart capitalist speaks

The US economy sits upon $31 trillion dollars of debt, an increasing percentage of which is held by foreign creditors.
Excess capacity afflicts almost every sector of the economy.
The stock market has fallen for three straight years, and price/earnings ratios STILL remain ridiculously high.
The dollar is falling.
Foreign investors are growing increasingly leary of US assets.
Chaos rules finance.
Interest rates can't go much lower, and if the dollar continues to fall they will jerk upward.
Real estate--the mainstay for the past couple years--has all the signs of a bubble ready to deflate...or worse.
........

Here's what Doug Nolan, an economist and (up until recently at least) believer in capitalism has to say about the present situation:

“We have reached the point where there is no turning off the Credit excess, no turning off the GSEs, no turning off the Mortgage Finance Bubble, no turning off the destabilizing world of derivative trading, and no turning off the rampant financial speculation and its increasingly destabilizing effects. It is truly one massive Bubble running out of control. And let’s not ignore the reality that these frightening financial convulsions are symptomatic of an extremely sick system. One of these days there will be a life-threatening seizure."