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It is my understanding that speculators are very interested in much of that property. Perhaps the Baker plan is to shortstop that and protect the owners. I don't know the behind the scenes reasons.

Regardless, you have homeowners, insurance companies, speculators, and the government all in play there. Many homeowners are absent an unable to appraise the situation to decide what to do.

It seems that the government has already categorized the houses in some neighborhoods. There is FEMA, the EPA, and others who are sometimes at cross purposes.

Not all residents will return but all property owners probably will. The whole situation needs some time to shake itself out but many are in such a hurry that they want things done now. Baker's plan doesn't get much sympathy because it creates yet another government agency that will be there forever and will be asked to do the same for every disaster. Hagin and Blanco also didn't do much to create sympathy for the area.

Although I live in Dallas now I have lived in Baton Rouge, Lafayette, and New Orleans so I know the area and love the people. However, these decisions are bigger than New Orleans. They are the lynch pin for how much we expect government to do. We are trying to turn government around and this kind of new program would be a big step in the wrong direction. Sometimes, Caveat Emptor is the best policy.

I don't have a problem with caveat emptor.

The point here is that government -- be it local, state, or federal -- will ultimately be on the hook here for all the people who default on their loans.

There's simply no way around that. So now, what do we do?

I suggest to you that for those whose property is covered by federally guaranteed flood insurance, rebuilding on the flood plain is insane. But, they have the moral and legal right to everything that the law provides.

Which is why I say, "pay them now, or pay them later."