Capitalism without God is just as bad as Socialism without God.
This is the root cause of many of our problems since the cultural revolution of the 1960’s.
The Pope is speaking on this just as JP2 called out Communism for its failures.
The "godless" part is the troublesome part, since any "system" will become a terrible engine of injustice if people are not converted, if they do not confess, repent their sins, and turn to God with all their hearts.
Of course, what we have now, at the top, all over the world, is "crony capitalism," the incestuous relationship between big business and big government. The government picks the winners and the losers, and the Fobes 500 line up at the government teats.
You've got favoritism in the distribution of legal permits, government grants, special tax breaks; government-funded research being privately and selectively appropriated; you've got "regulatory capture," in which businesses throttle the competition by entangling them in custom-made government-created obstacles; political donors are subsidized, awarded no-bid contracts, "stimulused" and bailed out, while political critics are tortured by the IRS and subjected to regulatory extermination.
This --- corporate welfare passing itself off as "capitalism" --- is a worldwide phenomenon.