The free market version of capitalism is a system where free individuals develop and invest their resources. The successful investor gradually builds up capital through the evolutionary process of analyzing the returns from their investment and making course adjustments as needed.
Federal Reserve and banking system seems to have created something entirely different from capitalism. This bastardized creation might better be called creditism.
While free market capitalism starts with the resources of free rational people making decisions on how best to use their resources, creditism starts with a centralized authority (in the US, this is the Federal Reserve). The reserve banks lend out money to regional banks at fixed interest. The regional banks then lend out money to other banks or corporations at a slightly higher rate, or they lend to individuals at a much higher rate.
In capitalism, the investor is confronted immediately with the fluid nature of the market. Investors in the real world know that there is no such thing as a guaranteed return on any investment.
The financial institutions caudled in through this process expect a guaranteed return for their investments. Financial institutions in this strange controlled creditist market fall into crisis mode at the first gust of market turbulence.
The thin skin of financial institutions in a creditist world is problematic. As you see, creditism tends to create systemic faults in the economy.
My last post on leverage indicates that people will leverage against the regulations in a system until the regulations crack. In a creditist system, large numbers of people will fall into the pattern of pushing credit to its limit.
When a large number of people in the credit market are fully extended, then turbulence in the credit market will result in a cascading collapse of the financial system.