Is Mexico Becoming a 'Failed State?'

President Felipe Calderón admits that his war on drug traffic is in trouble, and that Mexico's criminal gangs "want to replace the state." After almost four years of bloody warfare, cartels that sometimes outgun the army are smuggling more drugs than ever and expanding into other activities. Local corruption has allowed them free rein in many places, and kidnappings have shut down operations of state-run Pemex, a big source of national income. Calderón says he's open to changing his strategy. What are his options? Does the US have to do more to reduce the biggest drug market of all? What about legalization, north and south of the border?