How unprecedented was the devastation that Katrina wrought?

Asking this question may seem a bit unseemly in the face of the human tragedy and suffering that the hurricane caused in the Gulf region. But, at some point or other in recent weeks, and in one form or another, almost all of us have asked this question as we tried to assess Katrina’s long-term impact on the economy and the financial markets.

To be sure, some will insist that it is futile to find historical precedents. Never before has devastation of Katrina’s magnitude hit an area that is as crucial to the shipping and energy infrastructure as the New Orleans region is to today’s economy.

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