Palin: U.S. Could Be on Road to Depression

Gov. Sarah Palin answers Katie Couric question on the $700 billion Wall Street bailout proposal, saying that without the bailout there is a possibility of a Depression.

Here is a transcript of the interview, as released by "CBS News With Katie Couric":

COURIC: Sarah Palin kept up her busy schedule today, meeting with several world leaders who are here in New York for the UN session. But she took time out for an exclusive interview, in which we discussed the state of the economy at length. We began, though, by addressing reports that the lobbying firm of Senator McCain's campaign manager received payments from Freddie Mac until last month. I asked for her reaction to that.

PALIN: My understanding is that Rick Davis recused himself from the dealings of the firm. I don't know how long ago, a year or two ago that he's not benefiting from that. And you know, I was — I would hope that's not the case.

COURIC: But he still has a stake in the company, so isn't that a conflict of interest.

PALIN: Again, my understanding is that he recused himself from the dealings with Freddie and Fannie, any lobbying efforts on his part there. And I would hope that's the case because, as John McCain has been saying, and as I've been on a more local level been on a much more local level been also rallying against is the undue influence of lobbyists in public policy decisions being made.

COURIC: Then we focused on the $700 billion government bailout of bad debt and I asked her if she supports it.

PALIN: I'm ill about the position that America is in and that we have to look at a $700 billion bailout. At the same time we know that inaction is not an option and as Senator McCain has said unless this nearly trillion-dollar bailout is what it may end up to be, unless there are amendments in Paulson's proposal, really I don't believe that Americans are going to support this and we will not support this. The interesting thing in the last couple of days that I have seen is that Americans are waiting to see what John McCain will do on this proposal. They're not waiting to see what Barack Obama is going to do. Is he going to do this and see what way the political wind's blowing. They're waiting to see if John McCain will be able to see these amendments implemented in Paulson's proposal.

COURIC: Why do you say that? Why are they waiting for John McCain and not Barack Obama?

PALIN: He's got the track record of the leadership qualities and the pragmatism that's needed at a crisis time like this.

COURIC: But polls have shown that Senator Obama has actually gotten a boost as a result of this latest crisis with more people feeling that he can handle the situation better than John McCain?

PALIN: I'm not looking at poll numbers. What I think Americans at the end of the day are going to be able to go back and look at track records and see who's more apt to be talking about solutions and wishing for and hoping for solutions for some opportunity to change, and who's actually done it?

COURIC: If this doesn't pass, do you think there's a risk of another Great Depression?

PALIN: Unfortunately, that is the road that America may find itself on. Not necessarily this as it's been proposed has to pass or we're going to find ourselves in another Great Depression. There has got to be action — bipartisan effort — Congress not pointing fingers at one another but finding the solution to this, taking action, and being serious about the reforms on Wall Street that are needed.

COURIC: Would you support a moratorium on foreclosures to help average Americans keep their homes?

PALIN: That's something that John McCain and I have both been discussing whether that is part of the solution or not ... you know, it's going to be a multifaceted that has to be found here.

COURIC: So you haven't decided whether you'll support it or not?

PALIN: I have not.

COURIC: What are the pros and cons of it, do you think?

PALIN: Well, some decisions that have been made poorly should not be rewarded, of course.

COURIC: By consumers, you're saying?

PALIN: Consumers and those who were predator lenders also. That's, you know, that has to be considered also. But again, it's got to be a comprehensive long-term solution found for this problem that America is facing today. As I say, we are getting into crisis mode here.

COURIC: You've said, quote, "John McCain will reform the way Wall Street does business." Other than supporting stricter regulations of Fannie Mae and Freddie Mac two years ago, can you give us any more example of his leading the charge for more oversight?

PALIN: I think that the example that you just cited, with his warnings two years ago about Fannie and Freddie — that, that's paramount. That's more than a heck of a lot of other senators and representatives did for us.

COURIC: But he's been in Congress for 26 years. He's been chairman of the powerful Commerce Committee. And he has almost always sided with less regulation, not more.

PALIN: He's also known as the maverick, though. Taking shots from his own party, and certainly taking shots from the other party. Trying to get people to understand what he's been talking about — the need to reform government.

COURIC: I'm just going to ask you one more time, not to belabor the point. Specific examples in his 26 years of pushing for more regulation?

PALIN: I'll try to find you some, and I'll bring them to you.