Senator Chris Dodd's financial regulation bill would create numerous problems for the financial system, including giving power to the FDIC for which it is completely unprepared.

The federal government seems a long way from the economic disaster Bowles envisions, but some state governments, like California, are not. To avoid this, Congress could pass a law allowing states to go bankrupt.

Democrats have taken the side of Wall Street with their plan for new regulation, but Republicans should take the side of Main Street by arguing for tougher regulation that discourages government bailouts.

Panelists will address questions regarding Treasury Secretary Timothy Geithner's recently proposed two-part plan for addressing systemic risk.

State bankruptcy must serve to break the stranglehold of public-sector unions over state politics and budgets; help restore the federal government's precommitment against bailing out states; and advance, rather than distract from, the far more fundamental federalism reforms that will be required over the coming years.

The administration's rationale for setting up a government-run resolution authority--to the extent that it is based on the idea that the interconnectedness of Lehman caused the financial crisis--is not well founded.

Is it desirable or feasible to develop a regulatory framework that will prevent firms from becoming too big to fail or posing a risk of systemic harm?