To Regulate, or Not To Regulate - That is the Question

In an article from May 5 of this year, recent Nobel Prize winner Paul Krugman argues his case for more regulation of the financial system. While noting the merits of allowing the free market's ability to solve banking crises, Krugman argues that without regulation, though the market may provide short-term solutions, ultimately the financial system is doomed to failure unless the government steps in.
The recently-appointed president of the Foundation for Economic Education, Lawrence Reed, counters this claim in an article that will be coming out in this month's issue of the Freeman. In his article, Reed argues from an historical standpoint, showing how countries with less regulation have tended to have stronger banking systems, and vice versa.