"Not in my lifetime has a major American city been wiped out, but New Orleans is not functioning. The city has little fresh water, power, or infrastructure. Millions of people are at risk and only a methodical, disciplined strategy will allow them to begin living normally again. Talking Points has some suggestions: Any person or company exploiting the situation should be immediately identified and prosecuted. This includes looters. Every American should immediately cut back on gasoline and oil consumption. Don't drive unless you have to, and watch the thermostats in your house. Energy Secretary Samuel Bodman should inform American oil companies not to profiteer. I think their profits should be cut back by 20 percent to spare Americans pain. President Bush should ask OPEC to drop the price of oil by 15 dollars a barrel. It costs OPEC about four bucks a barrel to produce and market the crude; they're getting $70 a barrel on the open market - this is a gouge. Americans should help the Red Cross and other legitimate charitable organizations. Over the next few weeks The Factor will do what we always do. We will watch those in power to see exactly how they help the folks hurt by Katrina. And that includes you, oil company CEOs. You're on notice."

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Guest: Hurricane expert Stephen Leatherman & Bob Flowers, Army Corps of Engineers

Why did New Orleans take such a devastating hit, and can the city recover? Hurricane expert Stephen Leatherman had predicted this kind of catastrophe was possible. "Here's a city below sea level," Leatherman explained, "surrounded by levees that were undersized to handle anything above a Category 3 hurricane. So we had a recipe for disaster. We should have learned from the Dutch and done the things necessary to protect at least the main quarter." The Army Corps of Engineers' Bob Flowers agreed that New Orleans' levees were not designed to withstand massive pressure. "The opportunity to construct levees that would protect against a Category 5 hurricane have been investigated for some time. I think people will look back and say we should have invested the money to erect those. New Orleans will come back - it's a city with a great heart, and most of our oil and gas comes through the corridor. But it's going to be a long, tough process." The Factor expressed hope that authorities will learn from this disaster. "For the country to run economically, we have to rebuild New Orleans. But we have to put in a dike system that can withstand the worst possible storm."

Guest: Jeremy Olshan, New York Post & Lisa Carton, Fox News Radio

There has been rampant thievery in New Orleans, and New York Post reporter Jeremy Olshan was on hand as some residents went on a rampage. "I was far less concerned about the rising water level than the capability of the police to keep the place safe. You could feel it become scary, and it was clear the police had no control." Fox News Radio correspondent Lisa Carton also witnessed chaos. "It was mayhem. Police told us they were releasing prisoners from the local jails and they could not protect us. We saw people running in and out of stores and taking things." The Factor urged federal authorities to re-take the streets. "We hear there are gangs roving the streets with AK-47s because gun stores were looted, and we hear reports that police have been looting. We need to get the National Guard there to get things under control."

Guest: Kris Axtman, Christian Science Monitor

There was also looting in and around Biloxi, Mississippi. Reporter Kris Axtman described what she saw in the area. "Entire homes were swept off their foundations and are in the middle of the roads. We saw some looting, people going into stores and gathering what they could. People were coming with trucks and taking whatever they could from the Wal-Mart." Despite those isolated incidents, The Factor depicted the area as relatively calm. "The southern Mississippi situation is a little less intense than New Orleans. They're trying to figure out how to clean up, and looting is apparently not as intense as it is in the Crescent City."

Guest: Judge Robert Eckles, Harris County

As thousands of New Orleans residents are being taken to the Houston Astrodome, Judge Robert Eckles of Houston described what the refugees can expect. "We have water and sanitary sewers. We'll be able to feed them, get them showers, and ultimately get them to other shelters. We also have a clinic with health professionals and mental health professionals. There are telephones and computers and people will be able to access their families and friends." The Factor commended Texans for their preparedness. "I have to applaud you and the state for putting this together in 24-hours. It's an amazing thing to be able to serve 50-thousand people."

Guest: James Kilgore, Rev. Olivette Brown & Shirley Mae Washington, New Orleans survivors

The Factor spoke with three New Orleans residents who survived, but barely. James Kilgore recounted how he was rescued from the roof of his house; Rev. Olivette Brown described how her life was saved by two neighbors in a small boat. And 77-year old Shirley Mae Washington spoke to The Factor from her home, where she was still stranded. "I stayed here because my mother is here and she's 98. We are sipping on water that I had put into a cooler. I hope they'll get us out of here." The Factor promised to help Ms. Washington find a way to safety. "We'll have our producers call the authorities and try to get somebody over to your house in a boat to get you out."

Guest: Fox News correspondent Jeff Goldblatt

Wednesday night's program ended with footage of New Orleans residents, and some of their heartrending pleas: "We need help" ... "I'm looking for my family. I haven't seen them since Monday" ... "I need some food" ... "It's just sheer misery and hell."

Finally, Fox News correspondent Jeff Goldblatt provided an update from downtown New Orleans. "There are people coming up to us saying they don't know how to get out of here. They've been ordered to leave, they want to leave, but they have nowhere to go. I see more people getting more desperate." The Factor promised to keep an eye on officials to make sure people are being helped, and to expose anyone who is politicizing or exploiting the catastrophe.