They're still subject to the local authorities.
And the local authorities don't even have a citywide working radio system. Is Bush the President or not? This is simply a long drawn out 911. Lincoln stretched the legal limit during the civil war when required. Hiding behind beauracracy is not an acceptable excuse.
If the rumor of the mass hostage situation at the local hospital is true, Bush is going to catch hell for not getting the military in there sooner. And with good reason.
I couldn't care less about the looting, but securing the evacuation and emergency service is the priority.