How this could be—how the president of the United States could have even less "situational awareness," as they say in the military, than the average American about the worst natural disaster in a century—is one of the more perplexing and troubling chapters in a story that, despite moments of heroism and acts of great generosity, ranks as a national disgrace.

But it is not clear what President Bush does read or watch, aside from the occasional biography and an hour or two of ESPN here and there. Bush can be petulant about dissent; he equates disagreement with disloyalty. After five years in office, he is surrounded largely by people who agree with him. Bush can ask tough questions, but it's mostly a one-way street. Most presidents keep a devil's advocate around. Lyndon Johnson had George Ball on Vietnam; President Ronald Reagan and Bush's father, George H.W. Bush, grudgingly listened to the arguments of Budget Director Richard Darman, who told them what they didn't wish to hear: that they would have to raise taxes. When Hurricane Katrina struck, it appears there was no one to tell President Bush the plain truth: that the state and local governments had been overwhelmed, that the Federal Emergency Management Agency (FEMA) was not up to the job and that the military, the only institution with the resources to cope, couldn't act without a declaration from the president overriding all other authority.

The war in Iraq was a failure of intelligence. The government's response to Katrina—like the failure to anticipate that terrorists would fly into buildings on 9/11—was a failure of imagination. On Tuesday, within 24 hours of the storm's arrival, Bush needed to be able to imagine the scenes of disorder and misery that would, two days later, shock him when he watched the evening news. He needed to be able to see that New Orleans would spin into violence and chaos very quickly if the U.S. government did not take charge—and, in effect, send in the cavalry, which in this case probably meant sending in a brigade from a combat outfit, like the 82nd Airborne, based in Fort Bragg, N.C., and prepared to deploy anywhere in the world in 18 hours.

Bush and his advisers in his "war cabinet" have always been action-oriented, "forward leaning," in the favorite phrase of Defense Secretary Donald Rumsfeld. They dislike lawyers and sometimes brush aside legalistic (and even sound constitutional) arguments. But this time "Rummy" opposed sending in active-duty troops as cops. Dick Cheney, who was vacationing in Wyoming when the storm hit, characteristically kept his counsel on videoconferences; his private advice is not known.

Congressional investigations will take months to sort out who is to blame. A NEWSWEEK reconstruction of the government's response to the storm shows how Bush's leadership style and the bureaucratic culture combined to produce a disaster within a disaster.

At dusk, on the ninth floor of city hall, the mayor and the city council had their first encounter with the federal government. A man in a blue FEMA windbreaker arrived to brief them on his helicopter flyover of the city. He seemed unfamiliar with the city's geography, but he did have a sense of urgency. "Water as far as the eye can see," he said. It was worse than Hurricanes Andrew in 1992 and Camille in 1969. "I need to call Washington," he said. "Do you have a conference-call line?" According to an aide to the mayor, he seemed a little taken aback when the answer was no. Long neglected in the city budget, communications within the New Orleans city government were poor, and eventually almost nonexistent when the batteries on the few old satellite phones died. The FEMA man found a phone, but he had trouble reaching senior officials in Washington. When he finally got someone on the line, the city officials kept hearing him say, "You don't understand, you don't understand."

Bush, the governor later recalled, was reassuring. But the conversation was all a little vague. Blanco did not specifically ask for a massive intervention by the active-duty military. "She wouldn't know the 82nd Airborne from the Harlem Boys' Choir," said an official in the governor's office, who did not wish to be identified talking about his boss's conversations with the president. There are a number of steps Bush could have taken, short of a full-scale federal takeover, like ordering the military to take over the pitiful and (by now) largely broken emergency communications system throughout the region. But the president, who was in San Diego preparing to give a speech the next day on the war in Iraq, went to bed.

By the predawn hours, most state and federal officials finally realized that the 17th Street Canal levee had been breached, and that the city was in serious trouble. Bush was told at 5 a.m. Pacific Coast time and immediately decided to cut his vacation short. To his senior advisers, living in the insular presidential bubble, the mere act of lopping off a couple of presidential vacation days counts as a major event. They could see pitfalls in sending Bush to New Orleans immediately. His presence would create a security nightmare and get in the way of the relief effort. Bush blithely proceeded with the rest of his schedule for the day, accepting a gift guitar at one event and pretending to riff like Tom Cruise in "Risky Business."

Bad news rarely flows up in bureaucracies. For most of those first few days, Bush was hearing what a good job the Feds were doing. Bush likes "metrics," numbers to measure performance, so the bureaucrats gave him reassuring statistics. At a press availability on Wednesday, Bush duly rattled them off: there were 400 trucks transporting 5.4 million meals and 13.4 million liters of water along with 3.4 million pounds of ice. Yet it was obvious to anyone watching TV that New Orleans had turned into a Third World hellhole.

Late last week, Bush was, by some accounts, down and angry. But another Bush aide described the atmosphere inside the White House as "strangely surreal and almost detached." At one meeting described by this insider, officials were oddly self-congratulatory, perhaps in an effort to buck each other up. Life inside a bunker can be strange, especially in defeat.