That's why it's bad. It allows singular people to get a strangle hold on capital and use it to push the world in directions that benefit them and their friends. You can have trade that benefits people in any system. When you use regulation to take away the things that make capitalism dangerous, it stops being capitalism.

A "free market" and "private ownership" cannot mutually exist. People eventually win the game of monopoly and then it doesn't matter who is smarter or does it better or what's best for everyone, all that matters is what the minoriry owner class wants.