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NEW ORLEANS, Nov. 7 - Something once unimaginable has begun to happen here: the United Parcel Service is delivering again downtown. At Langenstein's grocery, celery and pork chops are moving out the door, and revelers spill out of the Magazine Street bars on Friday nights.


But just a mile away, workers are struggling to restore some flood protection to the city, which would barely stay dry in even a modest tropical storm. Tens of thousands of homeowners, facing six-figure repair bills for their rotting houses, are unlikely to get more than a fraction of that from the government. As phones ring in empty offices, even the shrimp business can barely find customers, and the economy remains comatose.

[...]

Will New Orleans be granted a vastly strengthened flood protection system - at a cost of up to $20 billion - or will it be told to allow low-lying residential neighborhoods to return to marshland? Will the city have to take control of thousands of houses to restore them - at a cost that no one has calculated - or will it have to tell thousands of evacuated residents not to return?

Every major decision seems to rely on another decision that has to be made first, and no one has stepped in to announce what the city will do and break the cycle of uncertainty. Many residents and business owners will not return and invest without an assurance of flood protection, for example. But workers who could rebuild the levees and much of the rest of the city are hampered by the lack of housing.

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