Credit Crisis Threatens Katrina Recovery

Economy New Orleans There are major worries in New Orleans over what a prolonged recession and tight credit market will do to the city's long and arduous recovery from Hurricane Katrina.

by Associated Press

Published: Wed, October 08, 2008 - 9:06 am CST Last Updated: Wed, October 08, 2008 - 10:32 am CST

NEW ORLEANS (AP) - There are major worries in New Orleans over
what a prolonged recession and tight credit market will do to the
city's long and arduous recovery from Hurricane Katrina.
The big loser would be the city's commercial sector, not the
projects slated for federal funding.
A lack of sufficient credit would smother not just companies
trying to start up or expand, but also any new jobs that would come
about.
That would cut off the flow of cash that developers need to
build new homes and first-time homeowners need to buy them. And it
would make it tough for the city to sell bonds to finance
rebuilding projects on its appointed timeline.
A real estate expert calls the idea "terrifying."

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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carl Says:

Wed, Oct 08, 2008 at 2:49 pm

They’re counting on the old adage"the squeeky wheel get all the grease”.

cmb1 Says:

Wed, Oct 08, 2008 at 2:08 pm

Its funny that we are still hearing about Katrina and Gustov and Ike you never hear about, what does that tell you?

Wait4Me Says:

Wed, Oct 08, 2008 at 12:18 pm

Amen, Carl

carl Says:

Wed, Oct 08, 2008 at 10:59 am

AH come on,it’s been three years and if you haven’t recovered yet the chances are mighty slim that you ever will. Tell them you’ve got all the money your going to get so use it wisely.

Kris Says:

Wed, Oct 08, 2008 at 10:37 am

To anyone who builds close to the water, they need to take responsibility for their actions. Places like New Orleans, Dauphin Island and some places in Texas need to make those flooded areas back to marshes and areas for wildlife. It has been said “a foolish man builds his house on the sand. The rains fall, the floods come, the wind blows and the house falls”.