Bush said "I don't think anyone anticipated the breach of the levees."  We've heard this before haven't we.  The only bright side is now the terrorist know attacking this area would be a waste considering the government's non-reaction and lack of rebuilding and clean-up record. 

Report: Gov't Forewarned Of Potential Katrina Damage
There is more documentation that the federal government knew in advance of the catastrophic potential Hurricane Katrina could have in New Orleans.  New documents released Monday show the Homeland Security Department was warned a day before Katrina struck that the storm's surge could breach levees and leave New Orleans flooded for weeks or months.  The Aug. 28 report was produced by the department's National Infrastructure Simulation and Analysis Center. It concluded that a category 4 or 5 hurricane would cause severe damage in the city and a direct economic hit of up to $10 billion for the first week. The report called those estimates "conservative."

Federal Report Predicted Cataclysm
As Hurricane Katrina approached the Gulf Coast, President Bush's top disaster agency warned of the likelihood of levee breaches that could leave New Orleans submerged "for weeks or months," a communications blackout that would hamper rescue efforts and "at least 100,000 poverty-stricken people" stranded in the city.  Those remarkably accurate predictions were in a 40-page "Fast Analysis Report" compiled by the Department of Homeland Security on Aug. 28. Documents show that the report was sent by e-mail to the White House Situation Room at 1:47 a.m. on Aug. 29, hours before the deadly storm made landfall.

Yahoo! News Full Coverage: Hurricane Katrina 
provides ongoing, in-depth coverage of Hurricane Katrina and the storm's aftermath, with articles, audio, video, and photographs.