"A preliminary report by Strike Debt on the economic effects of Hurricane Sandy on New York City. The report examines the use of loans, the main form of “aid” to disaster-impacted communities, as ineffective in addressing individual or community needs. Further, the use of loans may lead to disastrous longer-term economic consequences for the impacted communities."
"Implementation of federal disaster services in New York City reveals a policy whereby government responds to national disaster by transforming economic consequences into long-term, individual financial burdens. Most Americans believe that FEMA will be there to help in the event of a disaster. However, the vast majority of FEMA’s resources and efforts are spent on public assistance grant programs that provide infrastructure restoration. Individual victims of disaster are mostly offered personal loans to help them “get back on their feet.” Although these loans might seem good on the surface, they have many features of predatory subprime lending techniques and ultimately make long-term financial burden the precondition for “recovery.”"