Palin: Another Great Depression possible

NEW YORK - Republican vice-presidential candidate Sarah Palin said yesterday that the United States could be headed for another Great Depression if Congress doesn't act on the financial crisis.

Palin made the comment in an interview with CBS evening news anchor Katie Couric while visiting New York to meet foreign leaders for the first time in her political career. As Palin sought to establish her credentials in world affairs, first lady Laura Bush said that Palin lacked sufficient foreign policy experience but was "a quick study."

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Vice-presidential candidate Sarah Palin, making rounds in New York.

Recent surveys have shown that Palin's popularity, while still strong, has begun to fade.

Earlier this month, an Associated Press-Yahoo News poll showed more people viewing Palin favorably than unfavorably, 47 percent to 28 percent. But a Washington Post-ABC News poll released yesterday showed that in a two-week period, the number seeing Palin positively dropped 6 percentage points while 10 points more see her unfavorably. On Monday, a CNN-Opinion Research Corp. poll said that her favorable rating dropped 4 points and her unfavorable rating rose 8 points over two weeks.

Palin has been in New York this week for a series of meetings with foreign leaders, part of an effort by Republican John McCain's presidential campaign to counter criticism that the former small-town mayor lacks the experience to be vice president, let alone president in an emergency.

The CBS interview was just her third major interview in nearly four weeks on the GOP presidential ticket. Asked whether there's a risk of another Great Depression if Congress doesn't approve a $700 billion bailout package, Palin said, "Unfortunately, that is the road that America may find itself on." *