2. Cronyism in the recovery effort. Just as in Iraq there will be a feeding frenzy for government contracts for the recovery. A lot of these will likely be brokered by the former FEMA head who now works as a fixer to get people contracts.
3. Treatment of refugees from the coast. There has been a real outpouring of goodwill towards these people, but a lot of them are poor people of color, and I can foresee some culture clashes if they're relocated to mostly white areas. It's pretty obvious that a lot of the law enforcement in the South just thinks of them as crack heads and looters.
I think Bush has officially lost it on this one. How anyone who could still have confidence in him is beyond me. He didn't cause the hurricane, but his reaction to Katrina was pathetic, and the way he wrecked FEMA is a national disgrace.