I felt really good at President Bush's proposal to rebuild New Orleans, but when he says that we will do it with federal money without increasing taxes; he is using smoke and mirrors. If a person chooses to build or buy in a location with high risk involved, that person should be willing to accept the responsibility of rebuilding with his own resources, or accept his losses.
Maybe the developers should bear some of the responsibility of rebuilding. They are usually the ones who look at the empty space and say, "Let us build something there."
On the other hand, local governments, through zoning laws, have the responsibility and the power of declaring what can be built where, along with standards for construction.
Federal taxes should be used to help rebuild in a high-risk area only if it is in the nation's best interest.