There are quite a few people who still think it was the "free market" or "Capitalism" that failed. On the contrary, it was the government, regulation and central banking that failed. Lets see what the dictionary has to say:

Main entry: cap·i·tal·ism
Function:noun
Date:1877
: an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market

Hmm, no, we definitely never had Capitalism...Maybe this is what we have:

Main Entry:mer·can·til·ism
Function:noun
Date:1838
1 : the theory or practice of mercantile pursuits : commercialism
2 : an economic system developing during the decay of feudalism to unify and increase the power and especially the monetary wealth of a nation by a strict governmental regulation of the entire national economy usually through policies designed to secure an accumulation of bullion, a favorable balance of trade, the development of agriculture and manufactures, and the establishment of foreign trading monopolies

Ah, that sounds better! This crisis was caused by Mercantilistic (Keynesian) policies, not Capitalism. There is no 'flaw' in Capitalism. Allowing the free market to do its thing with minimal interference is the road to relative wealth and prosperity for all. A continuation of the failed policies of the Mercantilists will slow any potential recovery. Unfortunately it appears our omnipotent leaders have decided they want more of the same; indeed, it will be owed to what we have left of the free market when we eventually get out of this slump, not the actions of Rudd, Swan and Gillard which have been nothing but detrimental to recovery.