Obama Housing Plan Falls - New Home Sales at lowest on Record

(AP) Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.

The bleak report from the Commerce Department is the first sign of how the end of federal tax credits could weigh on the nation's housing market.

The credits expired April 30. That's when a new-home buyer would have had to sign a contract to qualify.

"We fear that the appetite to buy a home has disappeared alongside the tax credit," Paul Dales, U.S. economist with Capital Economics," wrote in a note. "After all, unemployment remains high, job security is low and credit conditions are tight."

New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.

Analysts were startled by the depth of the sales drop. - CBS News Story

Home Sales Fall Again - Recovery?

(AP) Sales of previously occupied U.S. homes dipped 2.2 percent in May, suggesting that a boost from government home-buying incentives is winding down earlier than expected.

The National Association of Realtors says last month's sales fell to a seasonally adjusted annual rate of 5.66 million. April's results were revised upward to 5.79 million. Economists polled by Thomson Reuters had expected sales to rise to a rate of 6.12 million.

The federal government had boosted home sales by offering buyers tax credits of up to $8,000. The deadline to get a signed sales contract and still qualify was April 30. Buyers must close their purchases by end of this month. - CBS News Story

Obama's Border Policies Fail to Help Stop Illegal Activity

Mexican drug cartels have set up shop on American soil, maintaining lookout bases in strategic locations in the hills of southern Arizona from which their scouts can monitor every move made by law enforcement officials, federal agents tell Fox News.

The scouts are supplied by drivers who bring them food, water, batteries for radios -- all the items they need to stay in the wilderness for a long time.

Click here for more on this story from Adam Housley.

“To say that this area is out of control is an understatement," said an agent who patrols the area and asked not to be named. "We (federal border agents), as well as the Pima County Sheriff Office and the Bureau of Land Management, can attest to that.”

Much of the drug traffic originates in the Menagers Dam area, the Vekol Valley, Stanfield and around the Tohono O’odham Indian Reservation. It even follows a natural gas pipeline that runs from Mexico into Arizona.

In these areas, which are south and west of Tucson, sources said there are “cartel scouts galore” watching the movements of federal, state and local law enforcement, from the border all the way up to Interstate 8.

“Every night we’re getting beaten like a pinata at a birthday party by drug, alien smugglers," a second federal agent told Fox News by e-mail. "The danger is out there, with all the weapons being found coming northbound…. someone needs to know about this!”

The agents blame part of their plight on new policies from Washington, claiming it has put a majority of the U.S. agents on the border itself. One agent compared it to a short-yardage defense in football, explaining that once the smugglers and drug-runners break through the front line, they're home free.

“We are unable to work any traffic, because they have us forward deployed," the agent said. "We are unable to work the traffic coming out of the mountains. That traffic usually carries weapons and dope, too, again always using stolen vehicles.” - FOX News Story

Obama Has No Plan for Gulf Spill

A wide majority of Americans believe President Barack Obama does not have a blueprint to combat the BP oil spill off the Gulf Coast, according to a new CBS/New York Times poll out Tuesday.

Fifty-nine percent of 1,259 adults polled nationwide said the president does not have “clear plan” for combating the spill. Thirty-two percent said Obama does have a plan to fight the spill and 9 percent didn’t know.

Sixty-one percent say the president’s response to the spill was “too slow” compared to 32 percent who found his timing “just right” and 2 percent who think he was “too quick.”

Just as Obama gets low marks for his administration’s response to the spill, the poll shows that there is little confidence the spill will be plugged quickly or that Gulf Coast residents will get the help they need.

Nearly half of respondents, 48 percent, said it will take “several months” to plug the spill while only 18 percent believe the leak will stop in the next “few weeks or months.” Sixteen percent said the spill will take a “year or longer” to end and 7 percent think BP will “never” stop the spill. - Politico Story

Obama Upset With Top General about His Comments

The top commander in Afghanistan, Gen. Stanley McChrystal, has been summoned to the White House to explain biting and unflattering remarks he made to a freelance writer about President Barack Obama and others in the Obama administration.

The face-to-face comes as pundits are already calling for McChrystal to resign for insubordination.

McChrystal has been instructed to fly from Kabul to Washington today to attend Obama’s regular monthly security team meeting tomorrow at the White House.

An administration official says McChrystal was asked to attend in person rather than by secure video teleconference, “where he will have to explain to the Pentagon and the commander in chief his quotes about his colleagues in the piece.”

Both Defense Secretary Robert Gates and Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, have spoken with McChrystal. Capt. John Kirby, a spokesman for Mullen, said “the chairman spoke to General McChrystal last night and expressed his deep disappointment with the article and with the comments expressed therein.”

McChrystal and his top aides appeared to let their guard down during a series of interviews and visits with Michael Hastings, a freelance writer for the magazine Rolling Stone.

The article, titled “The Runaway General,” appears in the magazine later this week. It contains a number of jabs by McChrystal and his staff aimed not only at the President but at Vice President Biden, special envoy Richard Holbrooke, Karl Eikenberry, the ambassador to Afghanistan, and others.

McChrystal described his first meeting with Obama as disappointing and said that Obama was unprepared for the meeting. - Politico Story