This article in Slate (a magazine with a liberal political orientation) is one of the best summaries I have seen sofar regarding the problems (political, economic, etc.) related to rebuilding New Orleans. The author also gives a little history of the growth of New Orleans. http://www.slate.com/?id=2125810&nav=tap1/
For economic and "emotional" reasons, I expect New Orleans to be rebuilt. But it will not be the city it once was.
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