July 4 (Bloomberg) -- Sarah Palin’s abrupt announcement that she was resigning as Alaska’s governor left observers speculating about a future for her that could range from a 2012 White House bid to political oblivion.

“She is a source of constant surprise,” said John Feehery, a Washington-based strategist who advised former House Speaker Dennis Hastert, an Illinois Republican. “Only time will tell if she’s a meteor flashing through the sky or a bona fide political star.”

In remarks to reporters yesterday at her home in Wasilla, Alaska, Palin did not directly offer reasons for her decision to quit the governorship before the end of this month.

She provided possible hints of her motivations, including a bitter after-taste from the 2008 campaign, in which she burst on to the national stage as Arizona Senator John McCain’s running mate on the Republican presidential ticket.

Since then, Palin said in her resignation announcement, she’s been subjected to the “the politics of personal destruction” through more than a dozen “frivolous” ethics complaints filed with state officials.

“The state has wasted thousands of hours of your time and shelled out some 2 million of your dollars to respond to opposition research,” she said. And her family was “looking at more than half a million dollars in legal bills just in order to set the record straight,” she said.

Palin, 45, was elected to a four-year gubernatorial term in 2006. Lieutenant Governor Sean Parnell will assume the governor’s office.

Split Reactions

Political observers were split over whether her decision to resign would serve her purposes should she decide to run for the White House.

Palin “made the right decision if she is serious about running,” said Washington-based independent political analyst Charlie Cook. “She could be a good governor or she can be a serious candidate for president, but she can’t do both well.”

Soon to be unencumbered by a job thousands of miles away from the major U.S. population centers, Palin will be able to “focus exclusively on political matters, international travel and boning up on policy,” said Matt Mackowiak, a Republican consultant.

While she will lose “some of the gravity” that comes with being a governor, “that is far outweighed by her inherent star power and the logistical freedom that she gains,” he said.

Rich Galen, a Republican strategist who advised former House Speaker Newt Gingrich of Georgia, questioned Palin’s move. “This hardly seems like a well thought-out strategy,” Galen said.

“You just can’t tell what she’s up to,” he added.

‘Nutty’ Decision

Resigning as governor is a “nutty” decision if Palin plans to run for president, said John Weaver, a former top political adviser to McCain. The best preparation for a White House run is to “be a good governor and get re-elected -- not be the point guard who walks off the court,” he said, alluding to her high school basketball experience.

“A very promising political career appears to me to have crumbled,” said Vin Weber, a former House member from Minnesota and Republican strategist.

“Of all the things that are expected of you when you are elected to office, the most minimal is serving out your term,” he said.

Scott Reed, who managed Republican Bob Dole’s 1996 presidential campaign, predicted that “Palin will still have an impact in 2012 -- either as candidate or as a leader of social conservatives. We haven’t seen the end of Sarah Palin.”

Other Republicans being mentioned as potential White House candidates in 2012 include former governors Mitt Romney of Massachusetts and Mike Huckabee of Arkansas, both of whom sought the Republican nomination in 2008, Governor Tim Pawlenty of Minnesota, Governor Bobby Jindal of Louisiana, and Gingrich.

Fallen Ratings

Palin’s approval ratings in Alaska have fallen since she became a national political figure. In May, a poll by Hays Research Group in Anchorage found 54 percent of Alaskans had a somewhat or very positive view of her, down from 86 percent a year earlier.

Palin’s resignation announcement came amid a fresh round of public recriminations between McCain’s inner circle and the Palin camp over last year’s campaign -- instigated by an article in the August issue of Vanity Fair. The nearly 10,000-word piece quoted numerous McCain advisers, mostly speaking anonymously, who disparaged the Alaska governor.

Palin admirers, including conservative commentator Bill Kristol of the Weekly Standard, responded by accusing some of McCain’s top campaign advisers of being dishonest and self- serving -- in effect trying to blame Palin for McCain’s loss in November.

Letterman Flap

Earlier this year, Palin gained extensive news coverage when she took public umbrage to a crude joke about one of her daughters by David Letterman, host of the “Late Show” on CBS. Letterman eventually apologized.

Palin’s selection as McCain’s running mate last summer gave the GOP ticket a temporary boost before President Barack Obama comfortably won the November election.

As the campaign unfolded, Palin demonstrated a strong appeal to rank-and-file Republicans. Interviews she did with ABC news anchor Charles Gibson and CBS anchor Katie Couric, however, raised questions about her knowledge of national and international policy.

In her statement to reporters, Palin said the pressures of the campaign had followed her back to Alaska, making life difficult for her and her family.

Still, she did not rule out a future in politics, vowing to “work hard for and campaign for those who are proud to be American and who are inspired by our ideals.”

Sports Analogy

Palin, a star high school basketball player, called on that experience in discussing her resignation decision.

She likened her political situation to that of an offensive player facing a “full-court press,” in which the defenders guard their opponents aggressively in trying to force a mistake.

She said a good basketball player knows when to keep the ball and “exactly when to pass the ball so that the team can win.”

Palin also indicated that she had decided not to seek re- election in 2010 before she made the determination to resign. “And then I thought -- that’s what’s wrong -- many just accept that lame-duck status, hit the road, draw that paycheck, and ‘milk it.’ I’m not putting Alaska through that.”

Trooper Case

During the presidential campaign, a panel of Alaska legislators investigated Palin’s dismissal of the state’s public safety commissioner who had refused to fire a state trooper involved in a divorce and custody battle with a member of the governor’s family.

While finding the public safety chief’s firing was legal, the panel criticized Palin for demanding the trooper’s dismissal. The investigation became known as “Troopergate.”

Palin has had 18 ethics complaints filed against her, all but three of which were lodged after she returned to Alaska from the campaign trail in November. The Alaska Personnel Board, which reviews such matters, has dismissed 15 of the complaints, finding the governor did not violate any state ethics rules.

The complaints have included allegations that she misused her office for out-of-state travel and that she accepted apparel gifts from a snowmobile manufacturer that sponsors her husband, Todd Palin, a snowmobile racer.

“Political operatives” who “descended on Alaska last August digging for dirt” after her selection as McCain’s running mate were behind the charges, Palin said.

The complaints have been dismissed “but it hasn’t been cheap,” Palin said. Remaining as governor while defending ethics charges would be “wasting public dollars and state time,” she said.

Earlier this year, Palin signed a book contract with HarperCollins to write her memoirs, expected to be out next spring.

To contact the reporters on this story: Edwin Chen in Washington at echen32@bloomberg.net; Simon Lomax in Washington at slomax@bloomberg.net

Last Updated: July 4, 2009 00:01 EDT