Obama Backs Off Las Vegas Spending Comment

Obama's attempt to soothe ruffled feathers came hours after a town hall meeting in Nashua, N.H., where he told a crowd that people ought not "blow a bunch of cash in Vegas when you're trying to save for college."

The comment came almost a year to date after the president referred to Las Vegas as a place where companies receiving bailout money from the government ought not be coming for junkets -- a perceived dig at America's top tourist and convention destination that led to an outcry.

This time, Obama told his audience: "When times are tough, you tighten your belts. You don't go buying a boat when you can barely pay your mortgage. You don't blow a bunch of cash on Vegas when you're trying to save for college. You prioritize. You make tough choices. It's time your government did the same."

That reference sparked a firestorm in which every member of the state's congressional delegation -- which includes three Democrats -- issued scathing statements lambasting Obama for discouraging tourism at a time when Las Vegas is among the nation's most economically depressed cities.

"I don't know if Obama has a problem with Las Vegas, but I have a problem with Obama," Rep. Shelley Berkley, a Democrat whose district includes the Las Vegas Strip, said in an interview. "This is the second time he has made a comment that is harmful to the city of Las Vegas and the people I represent. It is incomprehensible to me that he should not only repeat the same mistake but continue to insult the people and industry I represent."

Obama even took a licking from Senate Majority Leader Harry Reid, his top congressional ally and a politician facing a tough re-election campaign this fall. Reid issued a statement saying he told the White House "the president needs to lay off Las Vegas and stop making it the poster child for where people shouldn't be spending their money."

But later this afternoon, Reid was circulating a letter from Obama attempting to defuse the situation.

"I hope you know that during my town hall today, I wasn't saying anything negative about Las Vegas," Obama wrote. "I was making the simple point that families use vacation dollars, not college tuition money, to have fun. There is no place better to have fun than Vegas, one of our country's great destinations. I have always enjoyed my visits, look forward to visiting in a few weeks and hope folks will visit in record numbers this year."