Obama Tries to Heal Rift With 3 Little Words

LAS VEGAS (Feb. 19) -- Trying to redeem himself and bolster Democratic Sen. Harry Reid in a city that feels derided by the president and devastated by the recession, President Obama opened a speech to business leaders here with the declaration: "I love Vegas."

About two weeks after he bruised the city's ego by saying that Americans should not "blow a bunch of cash in Vegas when you're trying to save for college," Obama did not back off the remark. But he did try to smooth over bruised feelings, even as the mayor and governor snubbed him.

"Let me set the record straight: I love Vegas," Obama declared to a group of 650 business leaders in a ballroom at the Las Vegas Strip's newest resort, Aria. The president, who stayed Thursday night at neighboring Bellagio, quipped: "I love Vegas! Why, just last night I hit a flush on the river and cut the deficit in half."

In referring to the controversy, Obama made an appeal to common sense. "I think everybody here would agree," he said, "that the only place folks should spend their college savings is in college."

The crowd applauded.

Earlier, at a town hall in the suburb of Henderson, Obama obliquely referenced the controversy as well. A questioner who said he was a dentist was from Arkansas was asked by Obama why he was in Vegas.

"Everybody comes to Vegas," the man said.

"That's what I'm talking about!" the president said with a grin. "Have you spent some money in Vegas?" When the man said yes, Obama replied, "That's good. We're glad to see that.''

The rest of both of Obama talks was dominated by discussions of the president's economic strategies and endorsements of Reid, the Senate majority leader facing a tough re-election battle this year and beset by poor poll numbers in Nevada. Obama touted a new $1.5 billion program to provide extra money to the housing finance agencies in the five states hardest hit by the housing market collapse. Nevada, one of the five, leads the nation in the home foreclosure rate.

Before business leaders at Aria, he insisted that his efforts to unfreeze credit for small businesses and the impact of the stimulus bill passed a year ago this week will help improve the economy. He took a swipe at Republican opponents who decry the stimulus package but attend ribbon cuttings for projects funded by it, saying: "They're trying to vote against their cake and eat it too."

The reaction from the business community was mixed. Kristin McMillan, chairwoman of the Las Vegas Chamber of Commerce, said she was elated by Obama's profession of love for Las Vegas and especially the fact that Obama noted that his mother-in-law is an inveterate Vegas-goer. She pooh-pooh'd the fact that Mayor Oscar Goodman, until recently a Democrat before changing his affiliation to independent, and Republican Gov. Jim Gibbons remained angry with Obama.

"The president made it abundantly clear he's a huge fan of Las Vegas," McMillan said. "At this point, we need to focus on the fact that actions speak louder than words. He has been here a couple of times, he appeared before our chambers and convention authority today and clarified himself. I think that sends a very positive signal today."