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From Bad to Worse in NOLA

The economic crisis is the latest hindrance to stall rebuilding efforts in New Orleans. From issues of boosting homeownership to restoring tourism, the Big Easy's road to recovery is looking bumpier than ever.

"The city's infrastructure plans should stay on track, but a real estate expert calls it a "terrifying" scenario: A lack of sufficient credit would smother companies trying to start up or expand, and with them the new jobs needed to grow the area's economy. It would choke the flow of cash that developers need to build new homes and first-time homeowners need to buy them. And it would make it tough for the city to sell bonds to finance rebuilding projects on its appointed timeline.

Parking lots and buildings slated for reincarnation as gleaming high-rises might never move beyond blueprints. Small businesses, a lifeblood to the economy and neighborhood anchors, may never reopen or expand."

Full Story: Credit crisis threatens New Orleans' recovery

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