Sarah Palin exclusive Intervew with CBS News anchor Katie Couric

CBS News anchor Katie Couric sat down for an exclusive interview with vice presidential nominee Sarah Palin Wednesday, she focused on the economy - but also addressed reports that the lobbying firm of Sen. John McCain's campaign manager received payments from the controversial mortgage giant Freddie Mac until last month. Couric asked for her reaction to that.


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Related Post: Read the Sarah Palin/Joe Biden US vice presidential debate transcript HERE
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Sarah 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.

Katie 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 on a much more local level been also rallying against is the undue influence of lobbyists in public policy decisions being made.

Next, Couric asked about the $700 billion government bailout of bad debt - and whether she supports it.

Palin: I'm all about the position that America is in and that we have to look at a $700 billion bailout. And as Sen. 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 Sen. 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. But, 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 multi-faceted solution 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: Oh, 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: But can you give me any other concrete examples? Because I know you've said Barack Obama is a lot of talk and no action. Can you give me any other examples in his 26 years of John McCain truly taking a stand on this?

Palin: I can give you examples of things that John McCain has done, that has shown his foresight, his pragmatism, and his leadership abilities. And that is what America needs today.

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.
Katie Couric: As we stand before this august building and institution, what do you see as the role of the United States in the world?

Sarah Palin: I see the United States as being a force for good in the world. And as Ronald Reagan used to talk about, America being the beacon of light and hope for those who are seeking democratic values and tolerance and freedom. I see our country being able to represent those things that can be looked to … as that leadership, that light needed across the world.

Couric: In preparing for this conversation, a lot of our viewers … and Internet users wanted to know why you did not get a passport until last year. And they wondered if that indicated a lack of interest and curiosity in the world.

Palin: I'm not one of those who maybe came from a background of, you know, kids who perhaps graduate college and their parents give them a passport and give them a backpack and say go off and travel the world.

No, I've worked all my life. In fact, I usually had two jobs all my life until I had kids. I was not a part of, I guess, that culture. The way that I have understood the world is through education, through books, through mediums that have provided me a lot of perspective on the world.

Couric: Gov. Palin, you've had a very busy week. And you're meeting with many world leaders. You met with President Karzai of Afghanistan. I know the McCain campaign has called for a surge in Afghanistan. But that country is, as you know, dramatically different than Iraq. Why do you believe additional troops, U.S. troops, will solve the problem there?

Palin: Because we can't afford to lose in Afghanistan, as we cannot afford to lose in Iraq, either, these central fronts on the war on terror. And I asked President Karzai, "Is that what you are seeking, also? That strategy that has worked in Iraq that John McCain had pushed for, more troops? A counterinsurgency strategy?" And he said, "yes." And he also showed great appreciation for what America and American troops are providing in his country.

Couric: The United States is deeply unpopular in Pakistan. Do you think the Pakistani government is protecting al Qaeda within its borders?

Palin: I don't believe that new President Zardari has that mission at all. But no, the Pakistani people also, they want freedom. They want democratic values to be allowed in their country, also. They understand the dangers of terrorists having a stronghold in regions of their country, also. And I believe that they, too, want to rid not only their country, but the world, of violent Islamic terrorists.

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