Personally I think the major problem with capitalism is it ignores sustainability and assumes there is always an unlimited potential for growth when in reality we live on a planet of finite resources. Growth isn't a bad thing but unsustainable growth is. When the system is geared around maximizing profits it leads to a drive to dig up more, consume more and emit more at the lowest cost and damn the consequences.

Thus you get things like Sweatshops, Ok Tedi disaster etc.

Without regulation there's a good chance we'd still not have catalytic converters, we'd still be living with CFCs, Asbestos and DDT. I'm sure you can think of a dozen other examples the market has repeatedly shown it is not capable of regulating itself.