
Is the stock market ignoring an oil crisis? And FEMA in the aftermath of Hurricane Katrina.
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Michael Olinger
The NASDAQ composite with a huge gain.
Brooke Gladstone
The stock market is hitting all time highs despite the ongoing economic turbulence caused by the Iran war. Cognitive dissonance, anyone?
Brian Walsh
People are screaming that we are going to be running out of the supply we have. We're seeing airline companies cancel flights en masse. We're seeing energy rationing happening throughout parts of Asia.
Brooke Gladstone
The psychology of sticking your head in the sand. From WNYC in New York, this is on the media. I'm Brooke Gladstone.
Michael Olinger
And I'm Michael Olinger. Also on this week's show, one disaster did more to erode the reputation of FEMA than any other. But when hurricane Katrina hit, the agency's only employee in New Orleans was a PR guy.
Marty Bamunde
And I responded, oh my God in capital letters with eight exclamation points, tell her that I just ate an MRE. And in the hallway of the Superdome, along with 30,000 other close friends.
Brooke Gladstone
It's all coming up after this.
Michael Olinger
OntheMedia is supported by Progressive Insurance. Do you ever find yourself playing the budgeting game? Well, with the name your price tool from Progressive, you can find options that fit your budget and potentially lower your bills. Try it@progressive.com Progressive Casualty Insurance Company and affiliates price and coverage match limited by state law. Not available in all states. From WNYC in New York, this is on the media. I'm Michael Loewinger.
Brooke Gladstone
And I'm Brooke Gladstone. It's been over nine weeks since Iran essentially closed off the Strait of Hormuz, the world's most crucial oil choke point. As of earlier this week, just 534 ships are believed to have made it through the Strait intact. A piddling few compared to the hundred ships that sailed through daily prior to the war. Some of us are already keenly feeling the squeeze. And there's more to come.
Siobhan Allen
Diesel is inching closer to $6 a gallon nationally. That hurts. And it really matters because course they use the diesel. They use it for the tractors, for
Brooke Gladstone
irrigation and hauling every single pass across the field is costing them more.
Marty Bamunde
We've seen 12,000 flights being cancelled. That's 2 million seats. In terms of jet fuel exports on
Michael Olinger
a global basis, we see about 2 million barrels a day being exported normally.
Marty Bamunde
Last month we saw 1.3 million barrels a day.
Michael Olinger
The inventories number coming out of the
Brian Walsh
US the ones we got last night.
Michael Olinger
I've never seen anything like that before.
Brian Walsh
You know, the analogy I think is like that movie Jaws when the mayor declares the beaches are open.
Michael Olinger
Can see the fins swimming around around there. And the fin are these inventory numbers. Gas prices remain around $4.50 a gallon as a national average, with experts warning even if the conflict were to end soon, it may take months for more normal prices to return.
Brooke Gladstone
Curiously, very little of this is being registered on Wall Street.
Michael Olinger
The NASDAQ composite with a huge gain on top of a market that's continuing to. To see just honestly jaw dropping strength at this point, everything looking good for Trump on the markets and economy point of view.
Siobhan Allen
And it feels like we're just kind of at the point where we're looking beyond the conflict with Iran.
Brooke Gladstone
Brian Walsh, a senior editorial director at Vox and editor of its Future Perfect section, calls this phenomenon economic blindness, the jarring mismatch between economic reality and and the market's reaction. And he recalled a similar blindness of his own In February of 2020, while reporting on the beginnings of the coronavirus pandemic.
Brian Walsh
I had written about the first SARS in Hong Kong. I'd written about bird flu. I'd written about H1N1, the one we all forgotten in 2009. And I'd even written this cover story for Time magazine just a few years before the pandemic started that literally warns how we are not ready for the next pandemic in big, very scary letters on the COVID And yet even going into February, well after Wuhan had already been locked down, well after, it was pretty clear I think in retrospect, that this was not just an outbreak, that this could be something much more global. I remember telling people even, well, it'll probably go away.
Brooke Gladstone
Why did you say that?
Brian Walsh
I had seen and covered so many other situations that petered out because that is ultimately what generally happens. An event like that is incredibly rare. There was almost a fear I had of not wanting to seem alarmist, which is strange because I would often spend much of my time as a reporter outside this crisis trying to actually raise the alarm, trying to get people to understand this would be a real threat, we would not be ready. And yet, when the moment came, what I found myself doing was trying to not come off alarmist. I'm not sure whether I was trying not to scare people or whether I myself just when presented with what ultimately was exactly what I'd been warning people about, I couldn't make myself believe it. It didn't feel real to me.
Brooke Gladstone
But we're talking about economic blindness. Talk about how the markets behaved during
Brian Walsh
COVID The markets really weren't recognizing Covid as a serious threat. On February 19, 2020, the S& P hits an all time high. And you have to remember at that point, China was doing things that were unprecedented with Wuhan and the shutdown there and yet it hadn't really reached American shores. It took another several weeks for that to really kick in. And then you had what was the sharpest market correction in history. I think the market dropped 34% in just a few weeks. And that was Italy had shut down. There was that famous day in March when Top Hanks revealed that he had been infected with COVID The NBA shuts down, schools closed. Exactly at that point. The reality is impossible to avoid and it gets priced into the market, but well after the information was there.
Brooke Gladstone
Right. And you say this economic blindness is afflicting us again. The reality of the oil crisis is not matching up with with the markets. This week The S&P 500 and NASDAQ Composite set all time highs. Last week a Reddit user posted on Reddit Money can someone explain how the stock market keeps hitting all time highs while everything feels so bad?
Brian Walsh
There's something called the ostrich paradox, and this is from Robert Meyer and Howard Kuhnruder at Wharton. And they kind of identify six biases that tend to afflict people in these times. One is myopia, the inability to see what's in front of you. That's an inability of the market to fully recognize what's happening on the ground. There's amnesia, simply forgetting the fact that we've had past crises, including Covid, that can suddenly lead to a sudden correction. You have optimism, which is everything's going to work out. In that case, you're looking to what markets have seen with Trump and tariffs, where when the market looks like it'll react, he always backs down. That'll happen this time. There's inertia, which is today will be like yesterday. The world more or less keeps on going. There's simplification, which is just refusing to see the complexity of something like oil supply. And then there's hurting, which is when you see other traders continuing to price the market up and up. It is not a comfortable thing to be the person saying maybe not. That's what's happening here. Even though people who deal with the physical reality of oil itself are screaming that we are going to be running out of the supply. We have airline companies cancel flights en masse, energy rationing happening throughout parts of Asia, and yet the market continues to go up. Even the oil price doesn't really change hugely. It goes up and down, but not to the degree that it should if it was reflecting the physical reality on the ground.
Brooke Gladstone
All of this research that you've cited is grounded in the study of our reaction to natural disasters and more broadly, climate change.
Brian Walsh
Climate change is where a lot of this research comes out of, because you have long term change happening slow enough that we're not really catching up to it.
Brooke Gladstone
And yet with climate change, devastating fires, devastating floods, devastating heat waves all over the world and here in the United States, what's it going to take?
Brian Walsh
What did it take with COVID here in the United States, we can't have NBA games anymore. Oh, celebrities have it. Oh, wait, our schools have to close now. At that point it becomes unavoidable. With Hormuz, if you really started to see, say, a major US Airline canceling tens of thousands of flights the way that European airlines already have, suddenly mass numbers of people's summer vacations are canceled, something like that, then you react to it all at once. I think with climate change, it's always going to be difficult because it's simply too massive, too global, too slow moving to ever have the COVID moment, or maybe the moment we'll have with Iran. I don't know what the thing is for that.
Brooke Gladstone
Harvard psychologist Daniel Gilbert argues that gradual threats fail to trip the brain's alarm, leaving us soundly asleep in a burning bed. That this is evolutionary.
Brian Walsh
If you weren't able to respond very quickly to the immediate threat in front of you, you probably weren't gonna last very long. The saber toothed tiger, whatever. A great alarm system for that. What I don't have is for something where it's a drip, drip, drip climate change, is that for sure? Even with what's happening around Iran, you hear about Lufthansa canceling all these flights. You hear about these rationing activities that have been taken in Asia, countries in Africa that are running out of fuel altogether. They're all presented as somewhat discreet events. You don't hear that one story that says all this is connected.
Brooke Gladstone
And the question of when reality tends to hit the markets. You suggest that it might take armed conflict for the market to react definitively.
Brian Walsh
If you see the US Once again launching attacks on Iran, that would really drive home the fact that this thing is not open, opening up anytime soon. That would lead to significant market reaction. I think that's one reason, frankly, that the President seems to have been very reluctant to renew a tax. That's clearly one example of what would do it. If we see real impacts on airlines here in the US Again, not just spirit. Nothing wrong with spirit, but you know, one of the major ones that would do it. I mean, gas prices are clearly having the biggest impact right now, and they are up a startlingly high level. I mean, this is clearly having an impact that's being felt, and yet it hasn't really impacted the market yet.
Brooke Gladstone
One thing that you said to my producer, Candace, is that now we have fewer clear and present threats in our lives. This is screwing with our psychology.
Brian Walsh
We are not likely to be hunted down and killed by a predator animal. And many of the threats we now face do tend to take the form of these longer term, slower moving threats like AI. We hear about the threats of AI, how transformative it could be. We really struggle with that one because that's not just potentially massive. It also could be one that doesn't ultimately materialize. And that is a real struggle for us, especially with the response to. It would be something that would require some kind of global coordinated action. There is nothing about our brains that is wired to deal with that.
Brooke Gladstone
Right. You mentioned AI as a looming crisis. As a futurist, how do you deal with AI?
Brian Walsh
It's so difficult. And you know, I'm thinking again about COVID because AI is another subject. That future perfect wire work we've written about a lot in the past. And one thing I found strange is that we used to write a lot about existential AI risk. And that was almost easier for me to really imagine and believe. Before you started to see things like ChatGPT, before you started to see AI become a part of everyday life, that
Brooke Gladstone
they would become conscious and destroy the world a la Terminator.
Michael Olinger
Exactly.
Brian Walsh
Like the really out there sort of science fiction worries. I could actually take those more seriously before I saw AI in front of me all the time. And I don't know whether that's because I have a better familiarity with what it can and cannot do.
Brooke Gladstone
Ah, but you mentioned Covid. Is it because it's closer now and there's a herd fear?
Brian Walsh
Yes. The moment is here. Potentially. I mean, a big thing we've been focusing on AI over the last month or so has been this new anthropic model, Mythos. What can it do to cyber defense, cyber offense? Suddenly even the Trump administration is talking about regulating models for their release. That's meaningfully different. And yet I find myself a little bit like I'm feeling it's February 2020 to really pull the trigger on. Oh, the thing that we were worried about is upon us. I weirdly find myself reluctant. I think for the same reasons that hurting, that fear of being seen as alarmist, that fear of being proven wrong.
Brooke Gladstone
You suggest that a straightforward headline, the Strait is closed, would register more powerfully. So I wonder, is that the key? Did we tell the story of COVID 19 wrong? Are we telling the story of this oil crisis wrong? And how do we tell it right?
Brian Walsh
I do think we told the story of COVID wrong. We failed to put the pieces together and I think really make audiences understand that something was happening in China in January. Looking back, I can't believe I didn't appreciate it more. Definitely failed to put it in the kind of binary terms that maybe would have broken through. Doing a binary headline demands putting something on the line, saying something declaratively. And again with the straight of Hormuz. You can't trust what the president's saying. It often seems as if information is being released in a deliberate attempt to
Brooke Gladstone
time the markets and to push the markets.
Brian Walsh
Absolutely. And then you look at the strait itself. I mean, is it open? Is it closed? Every day it seems uncertain. I mean, when we actually look at the facts are ships going through the strait, the number is much, much, much lower. That's closed. And yet there's just enough uncertainty that we don't feel comfortable as the media simply saying that.
Brooke Gladstone
Brian, thank you so much.
Brian Walsh
Thank you very much.
Brooke Gladstone
Brian Walsh is a senior editorial director at vox.
Michael Olinger
Coming up, revisiting Hurricane Katrina in its aftermath as a public relations disaster for fema.
Brooke Gladstone
This is on the Media.
WNYC Studios Announcer
WNYC Studios is supported by Pulitzer on the Road, the official podcast of the Pulitzer Prizes back with its third season. Each spring, 23 prizes are awarded for distinguished journalism, books, drama and music. Pulitzer on the Road brings conversations with prize winners to you. You'll hear from the New Yorkers, David Remnick and Carlos Lozada of the New York Times, authors Natasha Trethewey and Lucy Sant, and journalists Nariman Al Mufti and Tolu Olorunipa. Listen to Pulitzer on the Road wherever you get your podcasts.
Marty Bamunde
I'm Al Edson, host of Reveal. From central Mexico to the front lines
Michael Olinger
of Ukraine, we were given an order not to take any prisoners.
Marty Bamunde
From an abortion clinic in Florida.
Michael Olinger
A woman was just assaulted to the streets of Chicago.
Brian Walsh
More than 2,000 kilograms of heroin came to Chicago.
Marty Bamunde
Reveal is your weekly dose of investigative reporting.
Michael Olinger
Somebody has to say something. Subscribe to Reveal wherever you get your podcasts. This is on the media. I'm Michael Ohinger.
Brooke Gladstone
And I'm Brooke Gladstone. On Thursday, a Trump appointed panel released its long awaited recommendations to overhaul the Federal emergency management. The panel suggested that FEMA should respond to fewer disasters, putting more of a burden on states. But what happens when the next big disaster strikes and FEMA can't or won't be there for the people who need help? This is just the latest chapter in the agency's troubled relationship with the people it's supposed to serve. A story that Micah has been delving into in a new series we're calling American Emergency. The Movement to Kill fema. Episode one aired last week and if you haven't heard it yet, you can go back and listen to the OTM podcast feed. In this week's episode, Micah revisits the disaster that probably did the most to erode FEMA's already dismal reputation. A quick note, there is a brief mention of suicide later in the hour. Okay, Micah, take it away.
Michael Olinger
Hours after Hurricane Katrina had passed through Louisiana, a man named Marty Bamunde stepped off of a Coast Guard helicopter. He had short gray hair, a FEMA lanyard around his neck, and a look of deep worry on his face. He had just surveyed the hurricane's damage to New Orleans from the sky and was ready to deliver the worst news of his career to a group waiting in the city's emergency operations center.
Marty Bamunde
There were probably about 15 people around that table, Mayor Nagin, the Homeland Security director, and all of their staff. And I asked them to spread out a map of New Orleans and I went methodically where that helicopter had flown and what I had seen and what the damage.
Michael Olinger
Marty had been sent to Louisiana to arrange an upcoming press conference for the leader of female not to facilitate disaster relief. On paper, he was not the right person to be doing this job.
Marty Bamunde
I was an external affairs guy. I was somebody who just talked to the media. And so I think some people didn't think I was qualified to make that type of an assessment.
Michael Olinger
But in that moment, he was the only FEMA official in the city, the only representative from an agency that had predicted years ago that a storm would one day swamp New Orleans.
Marty Bamunde
This was the worst case scenario and I spelled it out to them. There were people that started to cry at that meeting and I think the sense in that room was that our lives have changed forever and what do we do now?
Michael Olinger
This is episode two of our four part series, American Emergency. The Movement to kill fema. The Trump administration's modern day assault on FEMA is the culmination of countless negative narratives about the agency. Some exaggerated or outright conspiratorial, some real and deserved. This week we're looking at the true catastrophe that was Hurricane Katrina. A storm that took nearly 1,400 lives, washed away countless homes and left a small scar on the city and everyone who survived it. While FEMA's not a first responder, the agency had promised to pre stage supplies and personnel and then woefully underdelivered. The historic failures forever marred public perceptions of the agency. As one former senior FEMA official put it, to me, the memory of Katrina was a quote, monkey on our backs. And it intensified the suspicion that FEMA was doing more harm than good. FEMA's a dirty word, so it's just a full letter word. So I just say FEMA now instead of the other nasty words. Criticism of the federal government response to the disaster mounts.
Siobhan Allen
FEMA's a disaster.
Michael Olinger
Where's FEMA? Where's the mail? The aftermath of Katrina did usher in sweeping reforms. But last year, whistleblowers at the agency warned that Kristi Noem's Department of Homeland Security had left FEMA vulnerable once again. In a new letter to Congress, FEMA employees warn that the Trump administration is undoing two decades of progress since Katrina. It's called the Katrina Declaration and signed by 36 employees, while dozens more chose to remain anonymous.
Marty Bamunde
They're very concerned that we could see
Michael Olinger
the next Katrina level disaster based on the stripping away of FEMA that we have seen. To understand what went wrong in 2005 and what could go wrong again today, we need to take a closer look at the agency. Before the storm hit, FEMA was well
Marty Bamunde
aware of what the risks were to New Orleans and just the year prior did a major exercise called Hurricane Pam to play out that scenario of a major levee failure in New Orleans because of a hurricane. They're talking perhaps as many as 50,000
Michael Olinger
dead, up to a million homeless and a city underwater. This is PBS correspondent Peter Standring who spoke with researchers about the fictional Hurricane PAM exercise in 2004 for a segment that more or less predicted the events that occurred a year later. Just as the PAM exercise anticipated, Katrina would overwhelm levees and flood walls that were built to protect New Orleans from the bodies of water that surround the city, Lake Pontchartrain and the Mississippi River. In this doomsday scenario, levees intended to
Marty Bamunde
keep water out, trap it inside New Orleans.
Michael Olinger
But even though a Katrina like storm was on FEMA's radar, natural disasters were falling behind on the list of national priorities following 9 11. Washington, D.C. had been swept up in an all consuming frenzy. Just as Ronald Reagan had let Cold War paranoia subsume. FEMALE the war on terror had caused it to Shape shift once again, the Homeland security Act of 2002 takes the next critical steps in defending our country. Dozens of agencies charged with homeland security will now be located within one cabinet department. Fema, with its dual focus on natural disasters and civil defense, was hoovered up by the Department of Homeland Security.
Marty Bamunde
FEMA was now buried beneath several layers of other leadership within DHS.
Michael Olinger
FEMA's top leaders from the 90s who had shown that the agency could respond to natural disasters quickly and efficiently were replaced when President George W. Bush came into office and even his new political appointees would find themselves outmuscled by their new bosses at dhs.
Marty Bamunde
Let FEMA coordinate all of the catastrophic
Michael Olinger
natural disaster events the way it has been doing it. It does not need to be fixed. It's working really well. Former FEMA administrator James Lee Whit, that Clinton appointee we heard about in episode one, sounded the alarm about the new bureaucracy at a DNC hearing in 2004, a year before Hurricane Katrina. Witt said he'd been hearing from staffers who were frightened by all the abrupt changes at the agency. When we left in 2001, FEMA was ranked one of the top agencies in
Marty Bamunde
the federal government to work for.
Michael Olinger
Just recently in Washington Post, it was ranked dead last, 28th, similar to what's happening today under Trump. The agency's true blues were jumping ship.
Marty Bamunde
Our workforce had dwindled by almost half. We were probably at our weakest state when Hurricane Katrina hit.
Michael Olinger
Monster of a hurricane.
Marty Bamunde
A Category 5 storm with winds of 160, 165 miles an hour. A storm on track to be the biggest hurricane ever to hit the United States.
Michael Olinger
By Sunday, the morning before landfall, Marty Bamunde had arrived in New Orleans. As a seasoned PR guy, he'd made these sorts of trips many times before.
Marty Bamunde
About 300 days out of the year, I was working a disaster all sizes, little floods, large hurricanes. And I did that for eight years.
Michael Olinger
This time around, his assignment was to prepare a post storm press conference for his boss, Michael Brown, Bush's director of FEMA, who was in D.C. watching the storm approach the Gulf. Is FEMA ready for this? Because you guys have been pretty taxed lately with all the hurricanes of last year and this year's busy hurricane season.
Mike Brown
Well, we are ready, we're going to respond and we're going to do exactly what we did in Florida and Alabama
Michael Olinger
before coming to fema, Michael Brown had no prior emergency management experience. The press didn't pay much attention to him until after the storm when they began to scrutinize his resume, which included a failed congressional bid and a rocky stint leading the International Arabian Horse Association. To give you an idea of what he did there, investigative journalist Judd Legum on Democracy now. Back in 2005, he spent a year investigating whether a breeder performed liposuction on a horse's rear end. So I think that 11 years he spent there probably didn't serve him too well when he transferred over to fema. Brown was not qualified to lead the agency on a good day, and certainly not through the crisis that was about to unfold.
Marty Bamunde
The seminal moment was 4 o' clock in the morning prior to landfall.
Michael Olinger
Marty.
Marty Bamunde
By Monday, I got a bang on my hotel door and somebody was outside saying, we are evacuating the hotel. Everybody must get out.
Michael Olinger
Marty scrambled to find somewhere to wait out the storm. The highways were clogged as thousands of people fled the city. None of Marty's contacts in New Orleans would even pick up the phone. He finally got a hold of a local official who invited him to crash at City hall, which is how he ended up across the street from the Superdome. The stadium where the Saints play the
Marty Bamunde
Superdome was identified in previous planning that that would be a shelter of last resort, that they would put people in the Superdome because it had been rated to be able to withstand high winds from a hurricane.
Michael Olinger
The afternoon before the hurricane hit, Marty watched the first wave of people lining up at the stadium, almost entirely black residents. Some brought suitcases, coolers of food and pillows. For Americans around the country who were watching the crisis unfold on tv, the stadium would become maybe the clearest symbol of failure and neglect from city officials and fema. It became a hell on earth for evacuees like Siobhan Allen.
Siobhan Allen
So I tried to forget New Orleans and bury what I went through it. It's not something that I'm comfortable talking about or something I'm proud to talk about.
Michael Olinger
In 2005, the year of Katrina, when Siobhan was 18, her family moved to a new house in New Orleans, 8th Ward, after her mom won a housing lottery.
Siobhan Allen
She had received a Section 8 voucher. So that was our first time living in, like, a huge house. Coming from the project.
Michael Olinger
I know this is many years back now, but when do you first remember hearing that a big hurricane was coming to New Orleans?
Siobhan Allen
When did I hear about Katrina?
Michael Olinger
Yeah, the first time my grandma was
Siobhan Allen
talking about this big major hurricane coming. It's supposed to be bad. We watched when Ray Nagin said, everybody needs to evacuate.
Brian Walsh
I am this morning declaring that we will be doing a mandatory evacuation.
Siobhan Allen
We like, where are we going to go at? Where are we going to go?
Michael Olinger
Siobhan's family were among the 100,000 plus who didn't leave the city. The Hurricane Pam report had correctly predicted that elderly, disabled and poor residents, especially people without cars, were most likely to stay. Others just didn't believe the storm would be that bad. A year prior, some 600,000 New Orleanians had left the city ahead of Hurricane Ivan, a storm that pummeled the Caribbean and several states. New Orleans was largely spared, which to some made the mayor's warnings before Katrina seem like another false alarm. Siobhan wanted to stay. She and her twin brother had been planning a party for their 19th birthday on Sunday, the night before the storm was supposed to hit.
Siobhan Allen
It started getting dark, it started getting late, and that's when all our friends started arriving. So it was like a huge block party. We was listening to bounce music. Bounce music.
Michael Olinger
You had a nice birthday then.
Siobhan Allen
I had a nice birthday and it was a lot of drinking on that day. That was the last time I seen anybody I grew up with. From New Orleans,
Michael Olinger
Category 5 Hurricane Katrina makes its way towards the city of New Orleans. Expected landfall about 5 to 8am tomorrow morning.
Marty Bamunde
I specifically remember at 7 o' clock in the morning on Monday, the day of landfall.
Michael Olinger
Marty.
Marty Bamunde
By Monday, the early speculation was that New Orleans had dodged a bullet.
Michael Olinger
By late this evening, onlookers were back in the French Quarter.
Marty Bamunde
In the words of one, the fact
Michael Olinger
that the damage wasn't worse was pure New Orleans luck. I would say there's nothing like the flooding that we might have anticipated. This was clearly a horrific storm. Clearly it is going to be a mess to clean up. But, Wolf, they were expecting Armageddon here. Armageddon it wasn't.
Marty Bamunde
The media was down in the French Quarter, where all the hotels were, and the French Quarter had fared pretty well. We didn't really discover what the true impacts were until about 11 o' clock in the morning. I was in the radio center at City hall and we got a report that the 17th Street Canal levee had broken and that water was pouring into the city. I said, wow, we need to go and see this.
Michael Olinger
This is how Marty ended up on that helicopter flight. When he first approached a Coast Guard pilot to ask him to fly him over the city, the man said no. Probably thinking, why is this public affairs guy trying to hog a precious helicopter?
Marty Bamunde
So I told them a little white lie that I was there because the White House was counting on me to Give them a situational awareness following the hurricane.
Michael Olinger
It worked.
Marty Bamunde
About 30 seconds into the flight, I saw water for as far as the eye could see.
Michael Olinger
He later estimated, correctly that 80% of the city was submerged. The biggest gut punch was the sight of the people standing on their roofs waiting to be saved. Many buildings had been pushed off their foundations and were jumbled together. He said they looked like someone had taken a bunch of dice and. And thrown them around.
Marty Bamunde
I kept thinking to myself, I just need to let people know so that we can start to help people. I called Mike Brown directly, the director of fema, and I told him what I had seen, what the damages were. And he said, thank you. I'm going to let the White House know. And we subsequently got on a conference call with FEMA leadership in headquarters and FEMA leadership that was over in Baton Rouge. And I explained to them what I had seen. And their response was, thanks for the information. We'll try to get you out of New Orleans as soon as possible. That was it. No questions asked, no delving into what I had seen.
Michael Olinger
No questions, no delving. Why was there so little curiosity among FEMA's leadership about a crisis that the agency had predicted years ago? How had it been left to a PR guy to sound the alarm? All while with every passing hour, the situation seemed to be getting worse.
Brian Walsh
It's almost like being in a war zone.
Michael Olinger
If a home's not destroyed, it's full of water and lives just torn apart. Here you can see these rooftops just barely sticking out of the water.
Marty Bamunde
Look at that.
Michael Olinger
Those are homes.
Mike Brown
Those are homes.
Michael Olinger
Coming up on American Emergency. I told you earlier today, I didn't think this had turned out to be Armageddon. I was wrong. This is on the media.
WNYC Studios Announcer
WNYC Studios is supported by Pulitzer on the Road, the official podcast of the Pulitzer Prizes, back with its third season. Each spring, 23 prizes are awarded for distinguished journalism, books, drama and music. Pulitzer on the Road brings conversations with prize winners to you. You'll hear from the New Yorkers, David Remnick and Carlos Lozada of the New York Times, authors Natasha Trethewey and Lucy Sant, and journalists Nariman Al Mufti and Tolu Olorunipa. Listen to Pulitzer on the Road wherever you get your podcasts.
Marty Bamunde
I'm Al Edson, host of Reveal. From central Mexico to the front lines
Michael Olinger
of Ukraine, we were given an order not to take any prisoners from an
Marty Bamunde
abortion clinic in Florida.
Michael Olinger
A woman was just assaulted to the streets of Chicago.
Brian Walsh
More than 2,000 kilograms of heroin came to Chicago.
Marty Bamunde
Reveal is your weekly dose of investigative reporting.
Michael Olinger
Somebody has to say something. Subscribe to Reveal wherever you get your podcasts. This is on the Media. I'm Michael Oinger. While FEMA's only guy on the ground was trying to alert the agency's leaders about the breach at the 17th Street Canal levee, Siobhan Allen had just celebrated her 19th birthday with a raucous block party in the 8th Ward. She slept through most of the storm and woke up with a head splitting hangover when her dog, sopping wet, jumped on her bed. The first floor of their home was quickly filling with water. Her family was lucky to have a two story house. Most of her neighbors didn't. Her mom, grandmother, and siblings waited on their balcony. They burned sheets to try to get the attention of helicopters buzzing above them. Eventually, some guys from the neighborhood showed up in a little boat and offered them a ride to the Superdome.
Siobhan Allen
My grandmother and my mom were like, no, we're not getting on the boats. We're going to stay here. And I remember looking at my mom and saying, I cannot die on my birthday. I can't die here. And my mom and my grandmother stayed back. And I just remember telling them I love them and, and whatever happened, happens. And I remember I was real scared on the boat and we saw a dead body. And that's when I knew Katrina was, it was real. I'll never get the picture of this man out of my head for the rest of my life. I remember it was a black guy, he had on a white shirt, he had on some black pants, and he was just face down in the water. I just remember screaming on the boat. Just screaming and screaming and screaming and screaming all the way to the Superdome.
Michael Olinger
Not long after she arrived, Siobhan was faced with more death.
Siobhan Allen
It was a guy that took his life. He lost his whole family in a hurricane. He choked and landed at the bottom of the Superdome.
Michael Olinger
Oh, that's so awful.
Siobhan Allen
Everybody was just like shocked. Everybody trying to talk to the National Guards, begging the National Guards to help. And the National Guards was just like, they didn't care about us at all.
Michael Olinger
Within a day, Siobhan discovered that her family had made it to the Superdome safely. Her grandmother reassured them that the flood water would recede and they'd be able to leave in a day. But that's not what happened. Thousands of evacuees sought refuge in that shelter of last resort, only to be subjected to an unspeakable breakdown of law and order as the crowds at the Superdome grew, so did the wild rumors.
Siobhan Allen
There were a lot of looting going on. There was a shootout today as well. There were rumors of rapes, murders.
Marty Bamunde
Violence erupted and there wasn't enough security to stop it.
Michael Olinger
Tales of armed gangs, babies raped and killed at the Superdome. Mayor Nagin and law enforcement officials repeated some of these claims, as did CBS and Fox. Though investigators failed to find proof or first hand witnesses, the reports about looting were true, sort of. It wasn't as if swarms of people were like seizing on the moment to get free swag or flat screen TVs. They were hungry. Siobhan says she saw people trying to break into vending machines to get something to eat. FEMA had promised to deliver 15 trucks of water and 360,000 MREs ready to eat meals. Only a fraction arrived. 5 trucks of water and 40,000 meals.
Marty Bamunde
This is now becoming a disaster into its own right because of the conditions that were developing.
Michael Olinger
After wading back and forth through the flooded streets to visit the Superdome, Marty decided he'd be of more use just staying there 24 hours, hours a day, sleeping on the concrete while he relayed dispatches to FEMA headquarters.
Marty Bamunde
The Superdome had become a toilet bowl.
Siobhan Allen
The bathrooms was like disgusting. They didn't have any running water. I saw a guy taking a poop by the concession stand, just out in the open.
Marty Bamunde
The smell and the toxicity inside was unbearable.
Siobhan Allen
People were peeing in their seats in the Superdome. It was not safe and healthy for anybody to live in.
Michael Olinger
Like so many survivors, Siobhan had brought no supplies with her to the Superdome.
Siobhan Allen
I left my house with the skirt I had on, the maxi pad that I had on.
Michael Olinger
There was no toilet paper, let alone any sanitary products.
Siobhan Allen
So I walked around every day with a bloody skirt on. I was covered in my own blood.
Michael Olinger
It was hot and humid, with little drinking water and no power for air conditioning. People were fainting. FEMA's medical staff, which was supposed to arrive before Katrina, came late and were quickly overwhelmed. Siobhan's grandmother had a stroke and we
Siobhan Allen
didn't even know she was going to live, if she was going to die. She had no medical attention. It was a lot. It was a lot.
Michael Olinger
Siobhan says her grandmother pulled through, but in that moment, her family decided that whenever they could leave the Superdome, they were done with New Orleans. On Wednesday, the third day after the storm hit, Marty pulled out his BlackBerry and sent an email to his boss.
Marty Bamunde
I sent this email to Mike Brown and it said, sir, I know that, you know, the Situation is past critical. Here are some things you might not know. Hotels are kicking people out. Thousands are gathering in the streets with no food or water. Hundreds are still being rescued from homes. We are out of food and running out of water. At the Dome, plans are in works to address the critical need. Phone connectivity is impossible. More later.
Michael Olinger
Brown was staying 80 miles away in Baton Rouge, preparing for a TV hit on MSNBC that night. He never replied. But a few hours later, Marty received an email about the FEMA director's activity. His press secretary was concerned that Brown's schedule was too packed and that his dinner would be rushed, especially considering the wait times at Baton Rouge restaurants. Another FEMA colleague forwarded the email chain to Marty as if to say, get a load of this now.
Marty Bamunde
This is Wednesday afternoon at 2:44. So we were well into our third day at the Superdome, and I responded, oh my God, in capital letters with eight exclamation points. Just tell her that I just ate an MRE and crapped in the hallway of the Superdome along with 30,000 other close friends. So I understand her concern about busy restaurants. Maybe tonight I will have time to move the pebbles on the parking garage floor so they don't stab me in the back while I try to sleep. But instead I will hope her wait at Ruth Krist's is short, so you can tell the sarcasm in my response. Those kinds of emails that were going around told me they really do not understand the human crisis that we're dealing with here.
Michael Olinger
And there were other signs. Some Katrina survivors had been directed to a different impromptu shelter a mile away at the city' convention center. Just like at the Superdome, thousands of mostly black residents awaited rescue there without access to basic supplies. The day after Marty sent that email, CNN's Paul Azahn asked director Mike Brown about the lack of preparations.
Mike Brown
We just learned about that today. And so I have directed that we have all available resources to get to that convention center to make sure that they have the food and water.
Michael Olinger
You just learned that the folks at the convention center didn't have food and water until today.
Mike Brown
Are you Paula, the federal government did not even know about the convention center people until today.
Michael Olinger
Outside the convention center, one man held up a tiny baby to the news cameras. Here we go, baby. Out here, they don't have no formula, no water, and they want us to survive out here. Where's fema? Where's the mayor? But right now the immediate concern is to save lives and get food and medicine to people so we can stabilize the situation later. That week, President Bush did a now iconic presser with his beleaguered FEMA director And Brownie. You're doing a heck of a job. The FEMA Director's Working 2030. On Friday, DHS Secretary Michael Chertoff removed Brown from Louisiana. Mike Brown has done everything he possibly could to coordinate the federal response to this unprecedented challenge. I appreciate his work, as does everybody here.
Marty Bamunde
That's how it sounds when you get fired in Washington. As for what Mr. Brown may think of it all, we do not know. He wasn't allowed to answer questions.
Michael Olinger
His side of the story came out in the following months when he appeared in a series of televised congressional hearings about FEMA's Katrina response.
Mike Brown
My biggest mistake was not recognizing by Saturday that Louisiana was dysfunctional.
Michael Olinger
In his testimony, Brown said the blame should lie with the state and local officials who waited too long to order a mandatory evacuation. That FEMA's slow response during the storm could be explained in part by the fact that DHS officials had sat on reports about the levee breaches, including the calls from Marty Bamunde after his helicopter ride.
Mike Brown
It's my belief that had there been a report come out from Marty Bimondi that said that a terrorist has blown up the 17th Street Canal levee, then everybody would have jumped all over that. But because this was a natural disaster that has become the stepchild within the
Michael Olinger
Department of Homeland Security, he argued that the focus on terrorism before Katrina had hampered its ability to prepare.
Mike Brown
We asked for money to follow on Hurricane Pam to do the implementation of those plans. We asked the Department of Homeland Security for it, sir, and we did not get that money.
Michael Olinger
And who denied you that?
Mike Brown
Well, you have to ask DHS the process.
Michael Olinger
There was some truth to what Brown alleged. Katrina was a catastrophic breakdown of government at all levels. There was plenty of blame to go around. When asked why he didn't act sooner on Marty's warnings, he deflected by calling Marty an exaggerator. But looking back, Marty's assessments were accurate. Perhaps it was easier for Brown to blame the messenger than take responsibility for the horror that unfolded.
Brian Walsh
So how many total FEMA people were
Michael Olinger
pre positioned approximately at the Superdome?
Mike Brown
Counting the team, which I will count as FEMA people, you know, a dozen.
Michael Olinger
When asked the same question by lawmakers, Marty contradicted his former boss. Was there anyone else from FEMA in
Brian Walsh
New Orleans on that Sunday?
Marty Bamunde
No.
Brian Walsh
Monday?
Michael Olinger
No.
Brian Walsh
You took on enormous responsibility.
Michael Olinger
And it goes beyond public affairs.
Brian Walsh
You were the chief lifeguard here.
Michael Olinger
This is the reason I wanted to speak with Marty Bamunde. In the first place. To me, his story symbolized the complexity of the agency's failures during the storm, that beneath the dysfunction among its leaders, there were still FEMA workers who would do anything to help people, even if it meant sleeping on cement floors at the Superdome or testifying against his boss in Congress.
Marty Bamunde
I was honest. I wasn't trying to protect myself or protect anybody else. I was an emergency manager, and what I saw in Katrina infuriated me, and we needed to do better.
Michael Olinger
After the hearings, lawmakers took the lessons they had learned and passed the post Katrina Emergency Management Reform act, or PACHEMRA. The law requires that FEMA's top leader must have professional emergency management experience. FEMA remained part of the Department of Homeland Security, but the act gave the agency more freedom to spend money and mobilize aid before and during disasters. It also shielded FEMA from funding cuts by the Secretary of Homeland Security, or at least it was supposed to. Last year, whistleblowers at FEMA signed the Katrina declaration, the letter that was shared with Congress, claiming that the current administration has violated PACHEMRA left and right, leaving the agency vulnerable once more. Trump has yet to nominate a permanent FEMA director for Senate confirmation, and insiders I've spoken to say his rumored pick, Cameron Hamilton, does not have the required experience to lead the country through the coming hurricane season. The whistleblowers also pointed to DHS Secretary Kristi Noem's vendetta against fema, how she bullied workers at the agency, calling them names while withholding funds and attempting to slash preparedness programs. All this was too much for Marty. Last year, he decided to retire after three decades at fema.
Marty Bamunde
When my leadership tells me that I'm worthless and that I'm part of a conspiracy to do wrong in this country, that's a hard thing to swallow. You say, I don't know that I see a future here.
Michael Olinger
Fema, as you know, is sometimes a kind of a punchline. There was a Gallup poll from October of 2025 that found that it was the third least popular agency in the federal government. How much of that do you think is the product of FEMA's own failures? How much of that is the product of conspiracy theories and baseless allegations?
Marty Bamunde
I think it's a product of human nature. When there's a disaster and you're impacted, you're angry, you're hopeless, you're mad, your life's changed and all that you want is to be back to normal the next day, and that can't happen. And no FEMA can make that happen. We don't take it personally when you hear these ratings and everything. But I can tell you, to this day, whenever there's a disaster, the first thing people say is, where's fema? Where's fema? Because they know that we're going to be there to help, and they want us. They need us.
Michael Olinger
After leaving the Superdome, Siobhan Allen got on a bus to Texas and ended up in Houston, where she still lives today. For 16 years, she refused to celebrate her birthday.
Siobhan Allen
I just felt like it was a lot of lives lost on my birthday, and it wasn't worth celebrating. My mom told me that I can't keep living my life in the past, that I have to move on. I finally celebrated my birthday on my 35th birthday. I rented out a park and I gave myself a big, huge party. But even right now, to this day, I feel like when I celebrate my birthday, I'm celebrating the people that was lost in New Orleans.
Michael Olinger
Last year, on the 20th anniversary of Katrina, her 39th birthday, Siobhan worked up the courage to do something she'd never done before. She watched a documentary about the storm, a new Hulu series titled Hurricane Katrina Race Against Time.
Siobhan Allen
I sat in my bed on my birthday and I actually cried. Like I said, this is what we actually went through during Katrina.
Michael Olinger
She was moved in particular by the film's media criticism, its analysis of the exaggerated news coverage of violence and looting.
Siobhan Allen
I have three younger brothers that was in middle school, going into high school, and they caught the hate from the kids in the Houston schools. They used to get jumped on all the time just from being from New Orleans. The kids used to say, all y' all do is kill, steal, and rob people. And that's not my brothers and them, that's not their personalities.
Michael Olinger
After watching the documentary, Siobhan decided to tell her story in her own words for the very first time on TikTok.
Siobhan Allen
So I'm gonna talk about my stay in a Superdome for Katrina and how horrible it was to relive that trauma all over again.
Michael Olinger
At time of this recording, her video has been viewed nearly 90,000 times.
Siobhan Allen
I guess it started hitting the algorithm of people from New Orleans. Everybody started commenting on the video and started sharing my video. I was just like, I can finally let the past be the past and not be afraid to talk about him.
Michael Olinger
In the years since the storm, FEMA and climate change experts have begun to tackle one of its most salient lessons. Natural hazards hit poor communities and people of color the hardest. Studies show that marginalized groups are less likely to trust government officials during big disasters, more likely to live in flood prone neighborhoods, and less likely to receive adequate aid during the recovery process. These are basic facts. And yet, under orders from Trump's dhs, references to these disparities are being scrubbed from FEMA literature as part of a larger censorship campaign against language related to so called DEI and climate science. For most of my life, when I heard the word fema, images from the TV coverage of Katrina pictures I'd seen on TV flashed into my mind, and I don't think I'm alone. The agency may never succeed in decoupling itself from its greatest failure. But even as it tried to build on lessons from Katrina, there were new challenges and new threats. Next week on American Emergency, an anti government militia group known as Veterans on Patrol is claiming Hurricane Helene was caused by government controlled weather weapons. The group called Hurricane Helene an act of war. In the aftermath of Hurricane Helene In 2024, FEMA was hit by a tidal wave of disinformation. I don't think any of us knew the magnitude of what this storm would mean in FEMA's history and that I didn't know at the time. That's it for this week's show. This series is reported and hosted by me, Michael Oenger, with additional writing and reporting from me. Eloise Blondiot. On the Media's senior producer Jared Bartman designed the artwork for the series. Our fact checker is Tom Colligan. Original music and mixing from Jared Paul. American Emergency was edited by Executive Producer Katya Rogers. Special thanks to Brenda Valdivia and Justin Knight. On the Media is produced by wnyc. See you next week.
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Date: May 8, 2026
Hosts: Brooke Gladstone, Michael Olinger (Loewinger)
Notable Guests: Brian Walsh (Vox), Marty Bamunde (former FEMA), Siobhan Allen
This episode of On the Media explores why individuals, institutions, and even entire markets often ignore inconvenient or disastrous truths—whether it’s an unfolding oil crisis or the realities of climate change—through a psychological and media lens. The first half examines the concept of “economic blindness” and the psychological mechanisms that buffer us from looming threats. The second half continues the “American Emergency” series, with an in-depth look at Hurricane Katrina’s legacy on FEMA and disaster response, told through personal testimonies and institutional critique.
Main Theme:
Why do we—as individuals, the media, and the markets—persistently ignore or downplay mounting crises, even when evidence is overwhelming?
Market Disconnect Amid Crisis (00:00–03:14)
The Ostrich Paradox & Economic Blindness (03:14–07:26)
Gradual Threats vs. Immediate Alarms (07:26–10:57)
When Do Markets Finally "See" Reality? (09:24–12:23)
Media’s Role and Responsibility (12:23–13:37)
Notable Quotes:
Main Theme:
A deeply reported look at Hurricane Katrina’s devastation, FEMA’s catastrophic failings, and the ongoing institutional and personal consequences, as told by survivors, former officials, and investigative reporting.
Panel Proposal, FEMA’s Reputation, and Prelude to Katrina (15:04–17:31)
FEMA’s Preexisting Vulnerabilities (17:55–22:43)
Failure in Response & Personal Impact: The Superdome Experience (23:06–41:11)
Media Failure, Scapegoating, and Systemic Neglect (41:11–44:15)
Aftermath: Legislation, Leadership Failures, and Ongoing Vulnerabilities (45:09–47:26)
Legacy and Trauma for Survivors (48:11–50:13)
Systemic Inequities & Censorship (50:33–53:04)
On Economic Blindness:
On Katrina, Disaster, and Government Incompetence:
On Survivor’s Trauma and Resilience:
On Institutional Lessons and the Power of Story:
For further context: Next week promises to tackle disinformation targeting FEMA in the wake of recent catastrophes—a theme directly tied to the ongoing erasure of inconvenient truths in the American emergency response narrative.