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But New Orleans' poor homeowners will lose even more if they rashly invest in fixing up homes that will later be deemed uninsurable or are in neighborhoods so sparsely populated they can't get police, water or electricity service. If these residents hold out only a few months more, they can make better decisions about what to do.

Local and federal government, on the other hand, must move fast to make sure the city is inhabitable for low-income citizens. The federal government urgently needs to craft a measure like the one proposed by Rep. Richard H. Baker, R-La. Baker's proposal would allow homeowners to sell their ruined homes to a state development corporation and help them move to safer areas.

President Bush, in a speech from New Orleans' then-deserted Jackson Square, promised the nation that New Orleans would be rebuilt, but the White House has inexplicably withheld its support for Baker's proposal. Does the president intend for the federal government to finance the replacement of every destroyed house where it stood? If not, how will the rebuilding of New Orleans be accomplished?

New Orleans, meanwhile, needs to gather information. How many displaced people wish to come home? How many would live elsewhere if their old neighborhoods are unlivable or dangerously situated? How might they rebuild social networks? Gathering answers to these questions will jump-start the city's ability to offer utilities where needed and make crucial decisions about rebuilding plans.

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