A Collapse in Federalism?

Right now, the national, state, and local governments of the Gulf states are struggling to bring law and order, as well as food and shelter, to the many displaced people affected by Hurricane Katrina. Please read Paul Krugman's NY Times editorial here: http://www.nytimes.com/2005/09/02/opinion/02krugman.html and respond. Do you agree with his points? Disagree? How can the national, state, and local governments work together to deal with the ensuing chaos? Fully explain your position, as well as make any further comments or suggestions for how this horrible situation should be dealt with.