Capitalism VS Socialism

Edited from the comment by G.Sivalingam in "Is Capitalism at Fault?":

To allow capitalism to work, the insolvent banks or banks riddled with high non-performing loans and lack of capital should be allowed to fail and go bankrupt and exit out of the system. This is what should happen under perfect competition. However, it seems that most governments are not in favour of a capitalist system where the driving force is "survival of the fittest". What has in fact failed is government and the state which allowed or even facilitated greed and weak corporate governance to triumph over the economic system in allocating scarce economic resources. What the government did was to encourage the banks to take excessive risks at the expense of the depositors and taxpayers, which the government preferred to call it a "workout" instead of a bail out. The vast misallocation of funds hurt the pockets of the taxpayers. In other words, when banks made profits, they kept it. When the banks lost money and became insolvent the government through the taxpayer compensated them for their losses. The banks lived in a beautiful world or a "cloud-cuckoo" land. This is what they sarcastically describe as privatising the benefits and socialising the costs. In other words, banks operate under state socialism and a welfare state as they get welfare payments to bail them out when they go bust. Workers operate under the harsh conditions of free market capitalism. There is no welfare state for workers. For the ordinary folk it is survival of the fittest and capitalism as usual. But for the banks it is protection and government support. This is not capitalism but a state sponsored or guided economic system or in other words the economic system is a political construction to keep the political system stable and in equilibrium.

From conspiracy point of view, could this be part of slavery In The 21st Century?

Elitist puppeteering has a name

With his deep connections in economic and political circles, it could be Soros if there’s anyone who knows what’s coming next. Here is a comment from "The New Soros Plan on How to Save Italy and Spain":

Never mind that their profligate spending, overregulation, and inability to recognize the boom-bust cycle engineered by central banks lead to this crisis. The plan is essentially one long punt to give these so-called leaders a chance to come up with further band aids to save their own jobs. And with that Soros admits his desire for fiscal integration; the very next step toward centralizing statist power. Elitist puppeteering has a name, and it's George Soros...

Prior to that, Soros had also warns of violent riots In America, Financial Collapse, and Government Clampdown:

In his book The Crash of 2008 and What It Means Soros warned that no matter what governments did, there was no way out of the trap in which the world – namely The United States – finds itself: "So what does the end of an era really mean? I contend that it means the end of a long period of relative stability based on the United States as the dominant power and the dollar as the main international reserve currency. I foresee a period of political and financial instability, hopefully to be followed by the emergence of a new world order."

However things may go, it would be good that in the rush to implement popular schemes that could boost electoral ratings, such important public policies must ensure that short-term spending must not come at the cost of the country's future generations, as what Tricia Yeoh pointed out in her column.

The internet revolution, the tech boom, the invention of the PC and Microsoft and Steve Jobs' inventions convinced us that incessant technological changes will save capitalism and ensure its survival. However, after four years of the sub-prime crisis in the United States erupting into the global financial crisis we are wondering as to the future of incessant technological changes saving capitalism and making it triumph as the dominant economic system in the world. There seems to be a glimmer of hope with the possible listing of Facebook.

Sources:
The Rising Cost of Living
http://www.thesundaily.my/news/304029

Is capitalism at fault?
http://www.thesundaily.my/news/301025

The New Soros Plan on How to Save Italy and Spain
http://www.wealthwire.com/news/global/2588?r=1

Soros Warns of Violent Riots In America, Financial Collapse, Government Clampdown
http://www.wealthwire.com/news/liberty/2566?r=1

Notes:
Merit based system - listing is based on the merits of the case to be decided at the discretion of those in power or those in the listing committee.

Disclosure based system - listing is decided on the basis of the track record of the company seeking listing.