Field Marshall Von Rumsfeld made the comment in response to widespread looting in Iraq following our initial invasion. It was a comment along the lines of "these things happen." Jon Stewart was just applying it to New Orleans.
but no source, try googling some of it. This is what Rumsfeld said during one of his press conferences soon after Baghdad was captured.
"The task we've got ahead of us now is an awkward one ... It's untidy. And freedom's untidy. And free people are free to make mistakes and commit crimes and do bad things. They're also free to live their lives and do wonderful things. And that's what's going to happen here," Rumsfeld said. "And for suddenly the biggest problem in the world to be looting is really notable."
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