Palin warns depression may be looming

She meets leaders of Iraq, Pakistan, and India in N.Y.

Republican vice presidential candidate Sarah Palin met with President Jalal Talabani of Iraq in New York City yesterday. (Chris Hondros/ Getty Images)

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.

"Unfortunately, that is the road that America may find itself on," Palin said in an interview with CBS anchor Katie Couric broadcast last night.

The first-term Alaska governor said that the answer to the financial crisis doesn't necessarily have to be the bailout plan the Bush administration has proposed, but that it should be some form of bipartisan action to reform Wall Street.

While that was stronger language than he has used, John McCain told Couric, "I agree with Governor Palin, there's so much at stake here."

Asked whether talk of a depression could hurt consumer confidence, McCain defended his running mate. "I don't think we need to scare people, but I do think we need to tell people the truth," he said.

Palin gave the interview - her third major TV sit-down in her nearly four weeks on the GOP ticket - while visiting New York to meet foreign leaders for the first time in her political career, part of an effort by 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 McCain campaign set up the sessions with the leaders, who were among those in town for the United Nations General Assembly, and McCain accompanied Palin for meetings yesterday with the pro-Western presidents of the former Soviet republics of Georgia and Ukraine.

President Mikhail Saakashvili of Georgia and President Viktor Yushchenko of Ukraine expressed gratitude to McCain for his support for their countries, which have had strained relations with Russia since the breakup of the Soviet Union.

In the opening moments while reporters were present, Saakashvili thanked McCain for his backing during Georgia's conflict with Russia over the breakaway province of South Ossetia.

"Senator McCain was an inspiration to me for many years like he's been for many, many people all around the world," Saakashvili said. "Never underestimate the moral support he has provided us all these years."

As Palin sought to establish her credentials in world affairs, Laura Bush said that Palin lacked sufficient foreign policy experience but was "a quick study."

Laura Bush told CNN that she thought Palin had "a lot of really good common sense" and commended her executive experience.

Asked whether she thought Palin had sufficient foreign policy experience, Bush said: "Of course she doesn't have that. You know, that's not been her role, but I think she is a very quick study, and fortunately John McCain does have that sort of experience."

On her New York visit, Palin got a glimpse of the site of the Sept. 11 terror attacks as her motorcade made its way downtown to a private meeting with President Jalal Talabani of Iraq.

She did not respond to a reporter's question about what she thought when she passed the 16-acre site.

Just before meeting with President Asif Ali Zardari of Pakistan, a reporter asked Palin how her day was going.

"It's going great. The meetings are very informative and helpful. A lot of good people share an appreciation for America," she said.

Zardari, upon shaking Palin's hand, said he now understood why so many in the United States "are crazy about you."

Palin and McCain met last evening with Prime Minister Manmohan Singh of India, but a scheduling conflict caused a session with rock star/activist Bono to be cancelled.