By contrast, the typical private sector non-performing loans percentage is 1.5 percent for FDIC-insured bank loans and 4.3 percent for credit card loans. If a bank CEO delivered a non-payment rate over 20 percent to his board of directors, well, can you say, "You're fired"?

Government agencies like FEMA go from inefficient over-action to inefficient under-action. After California's 1994 Northridge earthquake, FEMA sent thousands of homeowners unsolicited checks up to $3,450 because they lived in zip codes supposedly hard-hit by the quake. When criticized, FEMA defended their generosity and denied making mistakes in the giveaway, because they "received very, very few calls from people who felt they didn't need the aid." You think?!

Why the reluctance to rely on private charity?

Before Hurricane Katrina struck, Home Depot's "war room" transferred high-need emergency items like batteries, lumber, flashlights and generators to distribution centers around the strike area. Afterward, Home Depot teamed up with the Red Cross and handed out much-needed items, including pet supplies.

Wal-Mart handed out $30 coupons to Katrina evacuees, and refilled medication for patients with containers from valid prescriptions. Using its huge database of consumers' past purchases, Wal-Mart determined which goods people needed most after a hurricane. Because of its advance logistics planning, the retail giant quickly moved in to hard-hit areas with mini Wal-Marts, handing out goods. The hurricane shut down 126 Wal-Mart facilities. A little over a week later, the company re-opened all but 14.

More government or more private sector -- you choose.