Why can't I simulate this circuit?
Your plot is what you get if you run a simulation with the default timestep of 0.1 seconds, which corresponds to 5 cycles of your AC source. This will not give a result correlating to the effect of the AC on your circuit.

You need to run the simulation with a time step significantly less than the period of the AC voltage source in order for it to have any correlation to the behaviour under AC. 

With a timestep of 0.001 seconds, you get twenty simulation steps per AC cycle and a result looking like: