Congress passed a 10.5 billion dollar aid package for the Gulf Coast region. FEMA is spending an estimated 1/2billion dollars per day. The recovery is expected to take weeks at a minimum and more likely several months. Rescue efforts are still underway nearly a week after the storm. Insurance companies expect to take quite a hit from this storm. Katrina will have an effect on the economy as New Orleans is a major shipping hub for the United States. Costs are expected to go up for many items we buy at the store since a vast majority requires shipping. The only part of New Orleans that was spared from major damage was the French Quarter. Compounding the disaster is that the local units of government are not taking in tax revenue because businesses are not open and won't be for quite some time until vital resources such as electricity, water and sewer services are restored.
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