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being used by the gangs ruling the streets of N.O. were looted from gun stores?

Phfffft, not likely.

Last year, university researchers conducted an experiment in which police fired 700 blank rounds in a New Orleans neighborhood in a single afternoon. No one called to report the gunfire.

From the same article above:

The city’s murder rate is still far lower than a decade ago, when New Orleans was the country’s murder capital. But in recent years, the city’s homicide rate has climbed again to nearly 10 times the national average.

I have a friend in the construction business (correction: was in the construction business ). The first 3 months of each year he was booked solid patching roofs because the custom is to shoot guns in the air on New Year's Eve.

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One New Orleans "tradition" which has been getting unwanted attention is the shooting of guns into the air for midnight. Despite the fact that authorities have been cracking down hard on the offenders, it still remains a problem – 5 people were hit on New Year's Eve 2001. Even the mayor himself once said, "I would take cover at midnight myself, and I know that's not possible for everyone to do in the French Quarter because of the density of people there... There are risks to being outside. I cannot guarantee anyone's safety."