"That is not so"

I haven't heard this addressed much (after I ran a search I did find some responses, although none in the mainstream media except for on an ABC blog), so I'll post it here for you guys. Did anyone else notice that Sarah Palin made an inaccurate sweeping policy statement about McCain's stance on the subprime mortgage crisis? Biden talked about wanting to allow bankruptcy courts to adjust the principal owed on mortgages, and said he didn't believe the McCain campaign supported that. Ifill, in turn, asked Palin if Biden had McCain's stance correct.

Here's the exchange:

Biden (in essentially dodging a question about him and Obama voting differently on the bankruptcy bill):
... Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe.

That would keep people in their homes, actually help banks by keeping it from going under. But John McCain, as I understand it -- I'm not sure of this, but I believe John McCain and the governor don't support that.

There are ways to help people now. And there -- ways that we're offering are not being supported by -- by the Bush administration nor do I believe by John McCain and Gov. Palin.

IFILL: Gov. Palin, is that so?

PALIN: That is not so, but because that's just a quick answer, I want to talk about, again, my record on energy versus your ticket's energy ticket, also. ...

The reality is that McCain does not support allowing bankruptcy judges to readjust principal. From ABC's fact check:

The Senate has voted only once this year on legislation that would change bankruptcy laws to help distressed homeowners. John McCain was absent for that vote. Contrary to what Palin says, the McCain campaign acknowledges that he does not support those changes to bankruptcy laws.

Watching the debate, it seemed to me that Palin had no idea what Biden said -- that she either wasn't paying attention, lost focus, or just didn't get it -- and assumed she was responding to some sort of attack rather than a substantive policy question. Thoughts?