TONIGHT: ABC’s ‘NIGHTLINE’ ASKS HOW GRIM IS VEGAS ECONOMY

ABC "Nightline" co-host Martin Bashir tonight examines how Las Vegas is dealing with its worst economic crisis in decades.

Mayor Oscar Goodman and Palms owner George Maloof weren't buying the doom and gloom, we hear.

Goodman, who has been chiding the local media for being too negative about the challenges facing the city and the Strip, takes issue at time with Bashir's line of questioning during their interview.

Also interviewed was Vegas Confidential's Norm Clarke, who cited a number of concerns, including Steve Wynn's prediction that "2009 will separate the men from the boys."

Since the interviews two weeks ago, Vegas Confidential is hearing rumblings that a tower at a major property could be closed this month due to falling occupancy.

Meanwhile, there's chatter that Penthouse may be announcing a deal within a month involving a fixer-upper property.