I was trying to find the SNL skit and cam across a much better description of the Hymietown incident.
Hymietown, hymietown [1980s +] (U.S.) A derogatory nickname for New York City.
It is unclear whether or not the Reverend Jesse Jackson is responsible for this novel coinage, but the popularity of the term is unquestionably his doing. Apparently in 1984 Jackson referred to NYC by the handle Hymietown in off-the-record conversations with reporters. When he was initially called to task for this anti-Semitic remark he flatly denied having ever said it. Milton Coleman, a trailblazing African-American reporter from the Washington Post, insisted that Jackson had used the expression, and Jackson later admitted his "error," saying "Charge it to my head . . . not to my heart." The gaffe has since largely been ignored, but for several years it cast a pall over Jackson's career, badly damaging his 1984 bid for the presidency. The incident was even lampooned, in song, by comedian Eddie Murphy on Saturday Night Live.
The fallout from the hymietown incident has perhaps affected the reputation of Milton Coleman, the reporter who broke the story, far more than it has Jackson. In her 1993 memoir, Volunteer Slavery, former Washington Post reporter Jill Nelson refers to Coleman as the Post’s "spook gatekeeper." She characterizes Coleman as a race traitor for "derailing" Jackson’s 1984 campaign. "Afterwards, many in the black community considered him a traitor. Many still do. He is the only person I can think of who black folks – the most forgiving people on earth – refuse to pardon. The Post promoted him."