Government warns of "catastrophic" U.S. quake

KANSAS CITY, Missouri (Reuters) - People in a vast seismic zone in the southern and midwestern United States would face catastrophic damage if a major earthquake struck there and should ensure that builders keep that risk in mind, a government report said on Thursday.

The Federal Emergency Management Agency said if earthquakes strike in what geologists define as the New Madrid Seismic Zone, they would cause "the highest economic losses due to a natural disaster in the United States."

FEMA predicted a large earthquake would cause "widespread and catastrophic physical damage" across Alabama, Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee -- home to some 44 million people.

Tennessee is likely to be hardest hit, according to the study that sought to gauge the impact of a 7.7 magnitude earthquake in order to guide the government's response.