PALIN: U.S. COULD BE HEADED FOR DEPRESSION

Governor Palin said yesterday that the United States could be headed for another Great Depression if Congress doesn’t act on the financial crisis. Ms. Palin made the comment in an interview with the CBS evening news anchor, Katie Couric, while visiting New York to meet foreign leaders for the first time in her political career. As Ms. Palin sought to establish her credentials in world affairs, first lady Laura Bush said Ms. Palin lacked sufficient foreign policy experience but was “a quick study.” The CBS interview was just her third major interview in nearly four weeks on the Republican presidential ticket. Asked whether there’s a risk of another Great Depression if Congress doesn’t approve a $700 billion bailout package, Ms. Palin said, “Unfortunately, that is the road that America may find itself on.” Ms. Couric pressed Ms. Palin on examples of how Senator McCain, a 26-year congressional veteran, had led the charge for more oversight. The Alaska governor cited Mr. McCain’s warnings about mortgage giants Fannie Mae and Freddie Mac two years ago as well as image as a maverick. Questioned again for examples, and reminded that Mr. McCain had been chairman of the Commerce Committee, Ms. Palin said, “I’ll try to find you some and I’ll bring them to you.”

BIDEN ATTACKS McCAIN ON ECONOMY, FOREIGN POLICY

Senator Biden told a southern Indiana crowd yesterday that the Bush administration had mishandled the economy and that Senator McCain would do no better. The Democratic vice presidential nominee drew applause from the crowd of several hundred people in a downtown park as he said the troubles on Wall Street had exposed “the failed philosophy of the last eight years. The financial crisis that rivals whatever we’ve seen since the Great Depression in terms of its potential to damage the country and the world economy.” Mr. Biden, chairman of the Senate Foreign Relations Committee, spoke to the rally after giving a morning speech on foreign policy in Cincinnati during which he questioned Mr. McCain’s judgment to be commander in chief, arguing that the Republican candidate would keep digging America into a hole of isolation and insecurity. Mr. Biden’s Indiana trip came as Republicans criticized comments the Delaware senator made to an Ohio voter last week that neither he nor Senator Obama “are supporting clean coal” — a reference to coal-burning power plants that use newer technology aimed a reducing carbon dioxide emissions.

BIG-NAME SURROGATES HEAD TO MICH.

The presidential campaigns of Senator Obama and Senator McCain are sending in Senator Clinton and Michigan native Mitt Romney to woo Michigan voters. Mrs. Clinton and Mr. Romney won Michigan’s Democratic and Republican primaries in January, but failed to win their parties’ nominations. Both presidential campaigns hope to capitalize on their surrogates’ popularity with Michigan voters. That could be especially important for Mr. Obama, who didn’t campaign in the state before the primary and who is still having trouble nationally getting the nod from some former Clinton supporters. Mr. Romney’s visit appeared to be on track even though Mr. McCain on Wednesday challenged Obama to suspend their campaign. On Saturday, Mrs. Clinton plans to talk to voters in Flint, Lansing, and Grand Rapids about Mr. Obama’s economic plans, making the case that Mr. Obama is the best choice for Michigan’s struggling workers. Mr. Romney arrives today.