If you want to know why capitalism is broken, just read the gouging threads here.
People are gouging...no question. The fact that seems to be overlooked is that the threat of government regulation is what allowed the gouging to occur because of the artificial stimulus to demand. No government threatening AWB and no government purchasing billions rounds of ammo and no opportunity for gouging exists.
This in no way shows that capitalism is broken, but that government intervention into the free market is broken.