I'm afraid I don't have a superior alternative to current system. After all, the more regulations are placed, the less free the market is..
Who knows? Maybe one day, when a civilization is born again, people will have the knowledge to see that the currency is something that represents value and that there's something inherently wrong with making money out of money.
We have to deal with things as they are for the time being though. I just can't stand it when this disconnect between the real world and capitalism burns down decent companies and results in millions of people on the fringe of social security being pushed off the cliff. Why is it we take the few success stories, parade them, and ignore the cruel reality of all the victims? Maybe I don't have a solution, but we have to keep pointing out the flaws, otherwise people will simply adjust to a more and more twisted environment.
I don't want to compare apples to oranges, but remember that kingdoms were overthrown because of 10% tax (among other things of course) during the Medieval times. The lion share the state takes these days hardly matches my mother's benefits now that she's being fired after thirty years of manual labour, for a company that had their capital in the wrong markets.
So.. I guess she's still better off, with running water and electricity in tact. But have we done anything to pull the developing world out of it's misery, or isn't it worse off than the farmers in Medieval Europe, who at least had their fertile land to depend on?
We have to maintain our perpective on the negative effects of capitalism, whether or not there is a better solution at hand, so we can perhaps some day through criticism, constructive criticism and brilliant innovations evolve this system before it devolves us to a lesser kind.
I'll start by voting suggestions in this thread by people more educated than me in the area of finance. Somehow, ideas tend to bubble up when they're shared and endorsed.