Couldn't have said it any better myself! What we have seen during the past decade or two isn't Capitalism. What you so comprehensively described, combined with runaway spending by government at all levels and the offshoring of our workforce(tax base) is what got us where we are today.
It's gonna hurt like hell, but the only way to fix this mess is to UNDO it!!
Like I posted before, capitalism isn’t a “system”. It is, like gravity, a physical law. Even under Marxism, or any other “ism” folks are still under it’s influence. They have just traded one thing for another. Just like trading money for carrots they have traded freedom for “security”. Like Ben said, they deserve what they get.