ELA, Volume 15, pp. 22-49, January 2006, abstract. Bounded and stably bounded palindromic difference equations of first order Leiba Rodman Criteria for palindromic difference equations A*x_i + Ax_(i+1)=0, where * stands for either transpose or conjugate transpose, to have bounded or stably bounded solutions are given in terms of the congruent equivalent classes of the matrix A. It is proved that the set of bounded palindromic difference equations is connected in the complex case, and has two connected components corresponding to the sign of the determinant of A in the real case. The connected components of the set of stably bounded palindromic difference equations are characterized.