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The Army Corps of Engineers are mostly to blame for creating that levy system that now is wreaking havoc in the delta. I read a report that if the area had been left alone to let vegetation like the mangroves and trees grow there, the extent of the damage would've not been as high. Your right, people should not be living there and I firmly believe they should not be allowed to rebuild in such high risk areas. Look at the amount of silt that gets deposited at the mouth of the mississippi because of the levy system, it's an ecological disaster.
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