Hiring splurges, but consumers stay frugal

The economy still has some trouble spots, but analysts are seeing signs of a gathering rebound that could lift off if consumers decide to open their wallets and jump in with both feet.

"The economy is improving and corporate profits are strong. They grew a little more than 8 percent in the third quarter," said Paul Edelstein of Lexington-based IHS Global Insight.

The job market also is showing signs of gains, with the Labor Department reporting yesterday that employers added 203,000 jobs in November and the unemployment rate fell to
7 percent, a five-year low. The Dow Jones industrial average jumped 198 points.

Boston University School of Management executive-in-residence Mark T. Williams, a former Federal Reserve Bank examiner, said stock market prices are indicators of future expectations in the economy.

"The stock markets across the board are hitting new highs, suggesting blue skies ahead," Williams said.

A key factor, though, is how willing consumers are to spend. Consumer confidence in December hit its highest level in five months, according to the Thomson Reuters/University of Michigan preliminary report released yesterday. But retail numbers show shoppers spent less over the Thanksgiving weekend than the year before.

"In general, consumers can express frustration, but keep on spending as if nothing is wrong," said Edelstein. We've seen that many times."

Edelstein said the improving job numbers can hide some dark clouds, as well.

"The unemployment rate is one number and it is falling more than expected, but it's falling because people are leaving the job market," Edelstein said. "It's schizophrenic, but overall the labor market is improving."

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Fort Point loft is perfect combination

One of the largest condos in South Boston's Fort Point district, this 3,009-square-foot loft was designed by well-known Hub architect David Hacin.

Hacin, who also designed the FP3 condo complex and the District Hall innovation center in the neighborhood, combined two fourth-floor units in Fort Point Place, a 126-unit complex at 21 Wormwood St. that was converted to condos in 2000-01.

The combined Unit 415 was made into a three-bedroom corner loft with a large, open living/kitchen area and adjacent dining room, and a large master bedroom suite with dressing/exercise room. It has original wood beams and exposed brick and ductwork throughout, as well as maple floors. The architect has designed built-ins, room dividers, shelving and pocket doors that enhance the space. The condo, which includes two deeded parking spaces, one in a garage below, is on the market for $1,649,000.

The complex features contemporary art in the lobby and has a semi-industrial look, with jelly jar lighting in the common hallways and stainless-steel doors on the units.

Unit 415 has two entrances and foyers, each with closets for two gas-fired heating and cooling systems as well as built-ins for clothes storage. Both foyers lead to a wide central hallway with wide-plank maple flooring that is featured throughout the unit.

At one end of the hallway sits an open kitchen/living area with eight large windows with Financial District and Seaport District views. The track-lighted living area has wood-beam ceilings, maple floors and exposed brick walls and ductwork.

The adjacent kitchen has a large built-in at one end, as well as a central custom-made bi-level wood island with a breakfast bar that seats four. There are white-painted wood cabinets, including several that are pantry-sized, above and below Uba Tuba granite counters. Appliances are Jenn-Air stainless steel, including a refrigerator, dishwasher and four-burner gas stove with microwave above.

Behind the living area is the third bedroom, now used as formal dining room, a long narrow space with brick walls and one window and a pocket-door entrance. The room feels a little claustrophobic, especially with the pocket door closed.

But the other two bedrooms are open and airy, particularly the master bedroom suite off the far end of the hall, which has pocket doors to close it off from the rest of the loft if desired. The sunny master bedroom has four large windows with nice views of Fort Point and the Seaport District. It also has maple floors, wood-beam ceilings, brick walls and has track lighting and built-in storage areas. A curving custom-made room divider has bookcases on the bedroom side and wardrobe storage shelves on the other, which has been partitioned off into a dressing/exercise room. Adjacent to the dressing area sits the maple-floored master bathroom with two large closets, one of which holds a stacked Asko washer and dryer. There's a white ceramic-tiled shower with glass doors and rainhead fixture and a cultured marble-topped vanity.

The second bedroom, currently used as a den/family room, is also good-sized with exposed brick walls and built-ins as well as a divider that creates a dressing area. There's a home office area fronting on the hallway, and this whole area can also be closed off if desired.

Across the hall is a second full bathroom with a pocket-door entrance and maple floors. This bathroom has a stainless-steel vessel sink, a white subway-tile shower with glass doors and two large closets.

The unit comes with two deeded parking spaces, one in a garage below the building and the other in an outdoor lot behind the building. There is no common outdoor space, but there is a pocket park across the street and a small urban market on the building's first floor.

Broker: Richard Greer of Kimball Borgo Real Estate at 857-919-4368.

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Sturdy Swede quite sporty

Always on the fringe of the sports sedan market, Volvo hurtles into the mix with the impressively reworked 2014 S60 T6 R-Design.

When mentioning the class led by luminaries BMW, Audi and Mercedes -Benz, the sturdy Swede rarely gets a nod. But the S60 R needs to be considered when test-driving the field.

Sporting a 3-liter inline six cylinder twin-scroll turbo producing 325 horsepower and all-wheel-drive geared through a six-speed automatic transmission, the Volvo is a quick and powerful machine. Spinning on blacked-out 19-inch Platinum Edition Ixion spoked wheels, the low-profile tires confidently cut into the road, gaining traction from the race-inspired front MacPherson struts and multilink rear suspension. The firm driver feedback through the rack-and-pinion steering not only gives the driver a confident ride but also makes handling the car a breeze.

The turbo purrs to life and needs little prompting to get you scooting comfortably and quickly down the road. The upgraded blue digital display lets you know when the turbo is demanding more, although the seat of your pants is a better indicator. Premium gas mileage for this sporty Scandinavian is 18 miles per gallon around town and 25 on the highway.

Aside from the mechanicals, what helps separate this car from wannabe sports sedans is the interior refinements highlighted by elegant piped leather seats — perhaps some of the more comfortable I've sat in — clean intuitive controls, brushed aluminum trim, and a robust 160-watt 8-speaker sound system. A 7-inch LCD monitor with back up camera, blind spot monitoring, Xenon active bending headlights and a sunroof round out some of the details of the car.

Sweeping body lines flow from the rakishly lowered front end with a small grille into a well-tied-together revamped rear end accented with a small spoiler, giving the sedan a striking presence on the road. The rear seats suffer some though and passengers will be a touch cramped. The trunk space is limited but both rear seats can fold down to make for extra room. There's also a ski slot through the armrest.

The base MSRP of $42,700 for the R-Design quickly gets to $49,315 with the Platinum Package, blind-spot monitoring and heated seats added in, and this is the one spot I'll pick on. Oddly, a car that has always led the industry in safety innovation and includes "City Safe" stopping does not include blind-spot monitoring or back-up warnings as part of its base cost. And extra for heated seats? In a car from the north country? After all, these are quite common features in even lower-priced cars.

The R-Design is the top of three trim levels although you can get a nice driver in a base S60 for about $33,000. I really enjoyed driving this car and, despite some expensive options, this is a good value if you're considering a sports sedan.

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A Whirl-Wynn of Hub meetings

Vegas casino magnate Steve Wynn made a low-key visit to the Hub Monday, taking meetings with legislators, including the rep who authored the state's gaming legislation, and state Gaming Commission investigators, whose probes led him to decry Bay State background checks as heavy-handed.

Wynn met with Ways and Means chairman Brian Dempsey, the Haverhill rep who partly authored the gaming legislation, as well as Sen. Sal DiDomenico of Everett, where Wynn wants to build the 
$1.4 billion resort. The Sin City titan also was scheduled to speak on the phone with Senate majority leader Stanley Rosenberg of Amherst, another key force in passage of the gaming law, but that conversation did not happen, the Herald has learned.

It was not clear what was discussed, or why Wynn would meet with lawmakers who don't have a dog in the Everett casino fight. Dempsey and Rosenburg did not return calls for comment yesterday. Wynn spokesman Michael Weaver would only characterize the visit as "providing an update of our project to legislators, a discussion about the industry in general and the entry of gaming into the commonwealth."

"You heard Mr. Wynn's comments before the Gaming Commission last time he appeared," Weaver said when asked what Wynn said during the meetings. "It was helping (legislators) understand how the process moves forward."

Wynn has publicly ripped the Gaming Commission as "freshmen" with an "unbelievable preoccupation that maybe a gangster is going to get in." In October, Wynn told the commission he was "scared to death" he'd be vulnerable to sanctions on the basis of "murky" investigations into his Macau operation.

DiDomenico said Wynn stopped by his office unannounced Monday, and stressed what his resort could do for Everett.

"There was nothing I could say I definitely gained from it, other than he was coming to say, 'Hey, we are going to your community and we're going to do good things,'" DiDomenico said. "It was quick. Done, over, see ya later."

Gaming Commission spokeswoman Elaine Driscoll said Wynn asked investigators Monday to set up a meeting with the commission. Wynn representatives will appear before the commission next Friday to outline a land ownership plan, and on Dec. 16 to determine if the company is suitable to apply for the sole eastern Massachusetts casino license. A proposal by Suffolk Downs and Mohegan Sun in Revere is also in the running.

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Experts: MGM’s debt could thwart casino’s chances

The head of MGM Resorts International yesterday said he feels confident the state Gaming Commission will find MGM suitable to continue with the licensing process to open a casino in Springfield, but two gaming experts said they wouldn't be so sure.

At a Boston College Chief Executives' Club luncheon, James Murren told reporters he was "excited" about Monday's hearing before the commission, five months after Springfield residents voted in favor of MGM's proposed casino.

"I have every reason to expect that we'll be found suitable," Murren said. "I have found the commonwealth to be very deliberate, quite transparent, professional ... which gives me the confidence, combined with the fact that I know the facts at hand with my own company."

MGM is $13 billion in debt, however. And in October, another casino applicant, Caesars Entertainment Corp., withdrew from its partnership with Suffolk Downs after the commission's investigators recommended against a license, partly because of Caesars' $23.7 billion debt.

"It would be interesting to see how (Murren's) going to finance (an $851 million) casino," said the Rev. Richard McGowan, a Boston College professor who has written three books on gaming.

New Jersey investigators in 2009 raised red flags about MGM's Macau business partner, Pansy Ho, and her father's alleged ties to organized crime.

Since then, MGM has gone public in Macau Murren said, and Ho, who sits on the board, is now worth more than her father.

"My guess is MGM is going to have the same trouble they had in New Jersey," said Whittier Law School professor I. Nelson Rose.

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How sellers, buyers can close deals faster

Real estate agents see it all — from unmade beds to overstuffed garages to the "What were they thinking?" decor.

Over the years, they learn why some houses sell while others linger on the market, and why some promising buyers never make it to the closing table. They know how to get a better deal on the mortgage, and how much the other agents stand to make on your home.

The good news is, they want to share.

The information is useful whether you're a buyer, a seller or both.

In today's market, sellers are again optimistic about the value and price of their homes — "but buyers aren't," says Ron Phipps, principal with Warwick, R.I.-based Phipps Realty, and past president of the National Association of Realtors.

"Your challenge as a seller is to price the house so that it is compelling," he says.

What does that mean?

"Set a price slightly below market value," he says. Just "a fraction."

For example: If similar homes in your neighborhood are clustered around $210,000, you might price yours at $200,000 or $198,000, he says.

"The longer a house is on the market, the less likely you are to get fair value," Phipps says. "So you really want to position yourself to be the one that sells, not the one that languishes."

And the adage of not wanting to leave any money on the table? Still valid.

If you're also buying a home, and you already have cash in hand, thanks to a fast sale, "that puts you in a very powerful position," Phipps says.

For many potential buyers, frugality ends the minute they get pre-approved for a mortgage, Phipps says. That's when they start running up the cards and opening new lines of credit to buy things for their home-to-be.

But that pre-approval letter is just one of the first steps in the home buying marathon, not the finish line.

Just before closing, a lender will re-examine a prospective buyer's financial situation — complete with a recent copy of the credit history and other updated information.

If those numbers have changed for the worse (salary decrease, higher card balances, new lines of credit), then the applicant could get clocked with a higher interest rate or even lose the loan. "The number of buyers who get denied is significant," Phipps says.

The moral? Never get new loans or start using credit cards more heavily until after you've actually closed on the home.

Even better, retain your frugality until you've been in the home for a few months and have a good sense of how homeownership affects your finances, Phipps says.

If you're selling a home, it's important to understand the timeline, says Jeffry Wiren, principal broker with Re/Max Equity Group and past president of the Portland, Ore., Metropolitan Association of Realtors.

Underestimating the time it takes — and building a schedule around those unrealistic expectations — adds stress, Wiren says.

Wiren's schedule breakdown:

 Getting your home in shape: two weeks

 Average time on the market (varies widely with location and price): 2 1⁄2 to three months

 Negotiating after an 
offer: one week

 Preparing to close (assuming a traditional transaction): 30 to 45 days

A smart seller allows a 
minimum of four to six months to sell, Wiren says.

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Little faith in Obamacare among under-30s

A majority of the nation's 18- to 29-year-olds believe costs will rise and quality of care will fall under President Obama's health care reform law, and fewer than three in 10 who are uninsured say they will enroll in coverage through an exchange if and when they are eligible, according to a new national poll by Harvard's Institute of Politics.

The Internet survey of 2,089 millennials found that a majority disapprove of the law, regardless of whether it is referred to as the Affordable Care Act (56 percent) or Obamacare (57 percent).

By a margin of more than 2 to 1, those surveyed believe that the quality of their care will get worse under the health reform law. And between 50 percent (when the ACA is used) and 51 percent (when Obamacare is used) believe the cost of care will increase.

"I wasn't surprised that opinions were negative, but I was surprised at the depth of the negativity, especially when you step back and say this is the demographic that helped get (Obama) elected, and this law is his signature policy achievement," said Trey Grayson, the institute's director. "The administration is going to have to do a better job at selling this."

Among the 22 percent of millennials polled who do not have health insurance, 29 percent say they will enroll in the program described as Obamacare, and 25 percent say the same of the ACA.

Fifty-two percent of those surveyed would recall all members of Congress if it were possible, and 47 percent would recall President Obama.

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Plans escalate for big Quincy Market upgrade

Faneuil Hall Marketplace would be set for dramatic changes to its historic Quincy Market building — including the addition of escalators — under preliminary design plans that manager Ashkenazy Acquisition Corp. is floating with the city.

The New York real estate investment firm is proposing a redesign of Quincy Market that includes a pair of new, two-story tenant additions encased in glass "sheds," according to an 80-page document submitted to the Boston Landmarks Commission. One of the new spaces is designated for a Uniqlo store, the Japanese fast-fashion retailer that's on an East and West Coast expansion spree, according to the documents.

"It's a preliminary design that we wanted feedback on," said Joe Press, Ashkenazy's senior vice president of asset management.

Plans the firm is scheduled to present at the Landmarks Commission's meeting Tuesday call for the removal of "temporary tenant installations." But Kristen Keefe, Faneuil Hall Marketplace's general manager, could not say whether they include pushcarts or other vendors.

Ashkenazy purchased the city-owned tourist center's lease for $136 million in 2011. The city's blessing was based in large part on Ashkenazy's promise of a capital investment in the property that included upgrades to draw locals.

But the city has expressed frustration with the firm's slow pace on a master plan to redevelop the property — a plan it initially had said would come in the spring of 2012. Ashkenazy since has hired Boston's Elkus Manfredi Architects, Watertown planning and design firm Sasaki Associates and New York's Biederman Redevelopment Ventures Corp. to help create the master plan.

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The Ticker

Owner explores sale of Providence Journal

The Dallas-based parent company of the Providence Journal, A.H. Belo, has hired a consultant to explore the sale of the paper, the company said in a statement.

The Journal is the only newspaper owned by Belo outside of Texas, after the sale of the Press-Enterprise of Riverside, Calif., last month.

The company said the eventual sale of the Journal is not guaranteed, and is dependent on finding an appropriate buyer.

MGM Springfield inks deal with Ludlow

MGM Springfield has signed its first surrounding community agreement with the town of Ludlow, the casino giant said. The town will receive $50,000 up front and a minimum of $100,000 per year, according to MGM. MGM is proposing an $800 million casino in the South End of Springfield. The project was endorsed by Springfield voters in July.

State income tax to drop Jan. 1

State Revenue Commissioner Amy Pitter has certified that the state's income tax will be lowered from the current 5.25 percent to 5.2 percent Jan. 1.

In a letter yesterday to Secretary of Administration and Finance Glen Shor, Pitter said tax collections have exceeded benchmarks and have met the threshold required under state law to trigger an automatic .05 percent reduction in the income tax. Officials say the tax cut will result in an estimated loss of $65 million in the fiscal year that runs through July 1.

Robot can solve Rubik's Cube

Humanoid robot Baxter, made by Boston-based Rethink Robotics, can now solve a Rubik's Cube, the company said. In a video posted online, the robot used primarily for monotonous manufacturing tasks recognizes the different colors of the cube and then figures out the necessary steps to solve the puzzle.

TODAY

• Labor Department releases weekly jobless claims.
• Commerce Department releases third-quarter gross domestic product.
• European Central Bank's governing council meets to set monetary policy for the eurozone.

TOMORROW

• Labor Department releases employment data for November.
• Commerce Department releases personal income and spending for October.

THE SHUFFLE

• Marjorie Cappucci, left, has joined Needham Bank's Medfield office as branch manager. She has more than 17 years of banking experience.
• Snom, a developer of IP desktop business phones, has appointed Brian J. Kelley as chief executive officer. Kelley had previously been managing snom's business in the Americas.

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Hub-Beijing travel ‘traffic’ spurs flights

Hainan Airlines' move to start nonstop flights between Boston and China was spurred by the already large number of travelers between the two destinations and the expectation for future growth, a company official said.

"There's a tremendous amount of traffic between Boston and China because of the educational travel, the leisure travel and the business travel in both directions," said Joel Chusid, Hainan's U.S. executive director. "It's a good thing for both economies. The market is also growing. We expect (it) is going to be further stimulated because of the nonstop service."

The Chinese airline confirmed yesterday that it plans to start direct flights between Logan International Airport and Beijing's Capital International Airport on June 20, as the Herald first reported last week. The flights initially will be four times weekly.

Hainan, Massport officials and Gov. Deval Patrick are set to announce the new service today. "Nonstop service from Boston to Beijing will open up new commercial and economic opportunities, and I thank Hainan Airlines for their partnership in achieving this significant milestone," Patrick said in a statement.

Hainan will start taking reservations within a few days for flights aboard Boeing 787s that will take a little more than 13 hours.

"It means a great deal because there are a large number of high-tech and not so high-tech companies in the Boston area that have very important trade relations with Chinese companies," said attorney Samuel Shafner, co-chairman of Burns & Levinson LLP's China practice. "The ability to easily make that trip may reduce a temptation for those companies to be located in markets like New York, where they have a direct flight."

Hainan, whose first nonstop U.S. service started in Seattle in 2008, had talked of Boston being its first U.S. destination since at least 2005. In his 2006 state of the city address, Mayor Thomas M. Menino announced Hainan expected to start air cargo service between Boston and Beijing and Shanghai that summer and passenger service that December. That plan was derailed by delays in the delivery and certification of the 787, Chusid said.

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German giant to venture into Hub

The venture arm of one of the world's largest pharmaceutical companies is opening its first U.S. office in Kendall Square, pledging to make $130 million in investments to life sciences companies.

"We chose Boston because it is unique," said Martin Heidecker, who will lead the Boehringer Ingelheim Venture Fund, an affiliate of Ingelheim, Germany-based Boehringer Ingelheim, citing the area's renowned universities and established biotech companies.

Heidecker said he will invest in early stage life sciences startups, and expects to give about $13 million to each company to help them grow and develop their technologies.

"We have a long-term perspective," Heidecker said, adding there is no time limit for the fund to be invested.

Although the main goal is to invest in companies that can eventually be acquired by Boehringer Ingelheim, Heidecker said he believes the products he ends up investing in will be difference-makers regardless of his parent company's involvement.

"The products result in solving the medical problems we have in the future," such as cancer, Alzheimer's and dementia, he said.

One of the reasons the Boehringer Ingelheim Venture Fund is different is its penchant for molding companies, Heidecker said.

"This is very hands on, very early" in a company's life, he said.

Although Heidecker will look for companies to invest in around the country, locating the office in Cambridge will naturally mean more investment in the local area, said Peter Abair, director of economic and global affairs for the Massachusetts Biotechnology Council. The average investment in Bay State biotech companies was about $8 million last year, he said.

"We do know venture capital does tend to stay close to where the VC firms can keep an eye on the companies," Abair said.

Heidecker, who has been in Cambridge for a month, said he has already found companies he is interested in backing.

"There will be investments in the near future," he said.

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In Japan, General Motors has high hopes, low sales

TOKYO — General Motors says it's in Japan for the long haul despite sales of Cadillac and Chevrolet models barely surpassing 1,000 vehicles a year.

There has never been much appetite in Japan for left-hand drive gas guzzling U.S. autos, and there are many informal barriers to foreign automakers making it here.

But GM executives see a glimmer of hope in the fact sales of its luxury nameplates have doubled in the past three years.

The automaker is trying to lure Japanese buyers with the new Cadillac CTS and Chevrolet Corvette, which it says boast better quality and mileage.

GM Japan Managing Director Sumito Ishii declined to give a sales target Wednesday, but said part of the Detroit automaker's sales strategy is to approach buyers who may not have preconceptions about GM.

General Motors Co. has also begun to offer models with the steering wheel on the right, which is standard in Japan.

"We have just begun our fight," Ishii told reporters at the Foreign Correspondents Club in Tokyo. "We offer attractive qualities that you can't find in Japanese and European cars."

Ishii and Gregg Sedewitz, director of sales and marketing, said the cars represent American luxury and are synonymous with risk taking, coolness and Hollywood celebrities.

The Cadillac CT comes packed with the latest technology, such as a lightweight structure and a direct injection turbo engine, and sells for 5.99 million yen ($59,900) and 6.99 million yen ($69,900).

The Corvette, which ranges from 9.29 million yen ($92,900) to 11.59 million yen ($115,900) including the convertible models, is the greenest Corvette ever, delivering 12.3 kilometers per liter.

They on sale in Japan from April and May next year.

Japanese consumers have historically favored European imports and home-made cars over American models, including luxury brands.

Annual sales of the Lexus, the luxury offering from Toyota Motor Corp., the world's top automaker, total about 40,000 vehicles in Japan. Annual sales for the BMW are about that same number.

Sedewitz acknowledged there was "no magic bullet" to boost sales volume in Japan.

"The numbers speak for themselves," he said. "We are in it for the long term."

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Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama

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Detroit to get crucial ruling in bankruptcy case

DETROIT — A judge was expected to announce Tuesday whether Detroit can come up with a plan to get rid of $18 billion in debt in the largest public bankruptcy in U.S. history, a case that ultimately could crack a shield protecting public pensions and also put the city's extraordinary art collection up for grabs.

Judge Steven Rhodes will declare whether Detroit is eligible to stay in court, more than four months after filing for Chapter 9 protection. It's the most critical decision so far because it could give local officials a green light to scrub the balance sheet and slowly improve the quality of life in a city that has lost more than 1 million residents since 1950.

Rhodes postponed his decision by an hour to give the public more time to get through courthouse security.

"Eligibility means working down a specific checklist and making sure the city has done what it needed to do to be in court. If the city gets its ticket punched, it's game on," said Michael Sweet, a bankruptcy expert who has advised struggling local governments in California.

Rhodes' task at this stage is limited to deciding if Detroit has met certain conditions to be in bankruptcy. A local government must do more than claim it's broke. There must be evidence that Detroit tried to negotiate in "good faith" with creditors or that such talks were simply impossible because of the number of parties and other factors.

During a nine-day trial, unions and pension funds with much to lose in bankruptcy vigorously fought the city on the good-faith requirement, saying a month was not enough time to make deals and avoid the historic filing last summer. Detroit emergency manager Kevyn Orr offered just pennies on every dollar owed to creditors.

If Rhodes finds Detroit isn't eligible for bankruptcy, it likely means the city would have to sit down again with creditors and try to reach an agreement outside of court. If that fails, the city could return and file again for Chapter 9.

But Orr is predicting an "Armageddon-like scenario" if the Chapter 9 petition is rejected Tuesday. He said creditors who have been owed money since July will clog the courts with lawsuits to get anything they can while the city attempts to stay afloat.

"The issue at this point is very narrow. ... I think Detroit will be ruled eligible," Sweet said. "I think the judge will find, given the factors the city and the emergency manager had to deal with, they did the best they could with what they had."

Detroit's largest creditors include two pension funds that are underfunded by $3.5 billion, according to Orr. The Michigan Constitution protects public pensions, but Orr believes bankruptcy law trumps that provision. If the city is found eligible for bankruptcy, pension cuts for 23,000 retirees are possible in the final plan. Most get less than $20,000 a year.

The city's art trove at the Detroit Institute of Arts also could be vulnerable. New York auction house Christie's is working on an appraisal of works that could be worth billions. Orr hasn't signaled a strategy yet, but even creditors are demanding a role in determining whether art could be used to raise money.

Jacqueline Esters, 66, said she's willing to take a hit to her $1,006 monthly pension if it means the city can turn itself around. She retired in 1998 after 30 years with the health department but found another job as a community college teacher.

Esters is concerned about her street. She believes her house might fetch just $30,000 if she put it up for sale, compared to $80,000 a decade ago. Someone broke a window on a vacant home just two doors away, meaning vandals are lurking.

"My idea of bankruptcy is you can start all over again," Esters said. "I don't know how much will happen in the neighborhoods. Until people are held accountable, the city is going to look like a dump."

Orr was appointed emergency manager in March under a Michigan law that allows a governor to send a manager to distressed cities, townships or school districts. A manager has extraordinary powers to reshape local finances without interference from elected officials. But by July, Orr and Gov. Rick Snyder decided bankruptcy was Detroit's best option.

___

Follow Ed White at http://twitter.com/edwhiteap .

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Mass. conference explores Internet-based network

BOSTON — Massachusetts officials will host a conference to discuss the transition from a traditional telecommunications network to an Internet-based network in Massachusetts and New England.

The state Department of Telecommunications and Cable will hold the New England Internet Protocol Transition conference Tuesday at Suffolk University Law School.

Issues, developments and controversies associated with the transition are expected to be discussed, including the effects on economic development and consumer protection.

Participants are expected to include: Gregory Bialecki, Mass. Secretary of Housing and Economic Development; Vermont Public Service Board member John Burke; and Cameron Kerry, former general counsel and acting secretary of the U.S. Department of Commerce.

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More Mass. communities join solar energy program

AMHERST, Mass. — Fifteen more communities are participating in the second round of a grassroots solar energy program run by the Amherst-based Massachusetts Clean Energy Center and the state Department of Energy Resources.

Solarize Massachusetts includes solar energy marketing, education and a group-buying program designed to increase adoption of solar energy while reducing the cost. The program started in 2011 offers residents a five-tier pricing program that increases savings as more people sign up.

The new participants are Adams, Amherst, Andover, Bedford, Chesterfield, Egremont, Great Barrington, Lexington, Needham, Salem, Swampscott, Watertown, Wellfleet, Whately and Williamsburg.

In western Massachusetts, Great Barrington will partner with Egremont, and Williamsburg, Whately and Chesterfield will work as a group.

In the greater Boston area, Salem and Swampscott will be partners, and Lexington will partner with Bedford.

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LeSabre shakes and rattles when it’s not on the roll

I own a 2005 Buick LeSabre with 65,000 miles on it. It has developed a vibration when stopped at a light with my foot on the brake and the transmission in drive. The vibration can be felt in the floor, brake pedal and steering wheel. Three GM dealers and one independent service agency have worked on the car. All four engine/transmission mounts have been replaced but the car still vibrates. Can you offer any suggestions?

While the engine/transmission mounts are always suspect in a case like this, there are several other possibilities. An engine misfire, roughness or vacuum leak can cause an idle shake. Since the power brake system utilizes engine vacuum for its assist, perhaps vacuum is leaking only when the brakes are applied.

In a safe location such as a large, empty parking lot, bring the car to a stop and keep your foot on the brake.

Then apply the parking brake very firmly. Release the brake pedal — hopefully the car won't move. Does the vibration/shake stop? If so, a vacuum leak is highly suspect.

Another possibility is contact between a driveline component such as the exhaust system and the chassis. A physical inspection might reveal rub marks confirming the contact.

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I have a 2001 Pontiac Grand Prix with front-wheel drive. The two front tires are P205/65-R15 in excellent condition. Several days ago I installed two P205/70-R15 tires in the rear, also in excellent condition. Will the slightly different tire size interfere with handling or fuel mileage? To my untrained eye, maybe this wasn't the best choice.

I agree — putting different-sized tires on the rear of your vehicle wasn't the best idea, but it probably isn't a complete disaster. First off, since the larger tires are on the rear of your front-drive vehicle, there shouldn't be any effect on fuel mileage.

The differences in tread width and rolling diameter between the two are relatively small. The rear tires are eight-10ths of an inch larger in diameter when new, but have the same section/tread width, 8 inches. And since the speedometer read-out is based on driveline and front-wheel speed, there won't be any change in speedometer accuracy.

Handling? That's another issue. But while it's never a good idea to mix tire sizes, since the tire size differences are very small and all four tires are in "excellent" condition, I can't see a huge issue.

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I drive a 2001 Hyundai Elantra with 178,000 miles on it. Over the past couple of years all four wheel bearings have been replaced. The first two only lasted one to two days each. The third, replaced along with the drive axle, lasted until April and the fourth went out in mid-May. The replacement lasted until July. What's going on?

Most manufacturers of front-drive vehicles utilize sealed front hub/bearing assemblies that are not serviceable. Hyundai, on the other hand, used a non-sealed hub with replaceable bearings in that vehicle.

Since the bearings were replaced individually, the quality and source of the bearings and the quality of installation are suspect. If the hub/bearing/knuckle assembly is not set up and installed correctly, bearing life will be dramatically reduced.

In addition, in July 2001 Hyundai began installing front-wheel bearing dust covers to keep road debris and contamination from getting into the bearings. If your vehicle was not fitted with these, the dust covers can be added when the bearings are replaced.

Paul Brand, author of "How to Repair Your Car," is an automotive troubleshooter, driving instructor and former race-car driver. Readers may write to him at: Star Tribune, 425 Portland Ave. S., Minneapolis, Minn., 55488 or via email at paulbrand@startribune.com. Please explain the problem in detail and include a daytime phone number. Because of the volume of mail, we cannot provide personal replies.

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Long-term jobless to suffer

Federal benefits for the long-term unemployed in Massachusetts are set to be eliminated at the end of this month, a move community leaders and economists say will hurt those who can't find work and is not necessary for the nation's economic health.

People eligible for Emergency Unemployment Compensation, a federal program that paid for 24 additional weeks of benefits for individuals after 26 weeks of unemployment, will no longer receive aid after the program expires Dec. 28.

"It's going to be very hard. I don't know what I am going to do if that happens," said Eric Santos of Malden, who was at a Boston unemployment office Friday. "I haven't found anything."

The Malden resident said members of Congress considering moves to extend unemployment benefits should go to unemployment offices and talk to the people whose lives will be affected.

"They need to help us out," said Santos. "I don't think they realize what we're going through."

Nigel Gault, co-chief economist for the Parthenon Group, said the state of federal spending has made the cuts unnecessary.

"We're not in a situation where it's imperative to make these cuts in order to keep the budget deficit down," Gault said.

Unless Congress votes to extend the benefits, more than 2 million unemployed workers will lose benefits by March. The number of people affected in Massachusetts is unclear, the state said.

"There's a lot of people throughout the country who are going to lose that income, and there's nothing to replace it," said John Drew, president and CEO of Action for Boston Community Development.

To make matters worse, Drew said nearly all of ABCD's job training programs have been eliminated due to sequestration-related cuts. The community organization now only offers one program, and has cut 11.

Barry Twomey of Boston is retired and has a pension, but he had been working for Mission Hill Health running farmers' markets to make ends meet until the markets concluded for the season.

If his unemployment benefits were cut, his pension benefits would leave little beyond the necessities, Twomey said.

"I'd be getting by paycheck to paycheck," he said.

Michelle Amante, director of the state Department of Unemployment Assistance, said her department will try to help those who will be affected by the cuts.

"It is a priority for DUA to ensure claimants know about and are prepared for the end of this federal program," she said.

Some, including Drew, are hopeful that Congress will act to keep the benefits, which have been amended 11 times since 2008.

"I hope that good sense prevails, that they do extend" the benefits, Drew said.

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Ireland sees green in growing Boston companies

Ireland's top diplomat in Boston is looking to build bridges to the Bay State's business community as a way to help get his country's economy back on track.

Breandan O Caollai, the Consul General of Ireland in Boston, said local companies could be key to Ireland's continued economic recovery.

"It's a huge potential there," he said.

O Caollai, who started in August, said one of his priorities will be to find economic opportunities for Ireland, largely by convincing local companies to open offices in his island nation. The relationship between Ireland and Boston should be about more than just heritage and history, he said.

"We just don't want to sentimentalize this, we don't want it to just be St. Patrick's Day," he said. "We want it more than that."

As Ireland's economy recovers, the country is hoping American investments can play a part in its continued growth. Last week, the country's unemployment rate dropped to 12.8 percent, the lowest rate since 2009, and down from a high of 15.1 percent.

Companies "can invest in Ireland, you can have your European headquarters in a sympathetic country which has its economy in good shape," he said.

More than a dozen Boston area companies have offices in Ireland, largely technology, life sciences and financial companies, O Caollai said.

He said many companies choose to open offices in Ireland because of the availability of talent, the relatively short travel time and lower corporate taxes than similar countries.

Mike Volpe, CMO of HubSpot, a Cambridge marketing technology company, said locating its international headquarters in Dublin made sense for a number of reasons.

"The biggest thing was the talent pool and the companies that had the models that were similar to ours were right there," he said.

The office, which opened at the beginning of this year, has about 50 employees, and will continue to grow, Volpe said.

"An awful lot of the growth in American investment in Ireland is from companies that are already there," O Caollai said.

O Caollai said he, along with Irish economic development agencies in Boston, will be looking for bio-tech and technology companies to complement the companies that are already in Ireland, such as Boston Scientific, Fidelity and LogMeIn.

On top of established companies, the country is also looking for companies that can mature in Ireland.

"New York and Boston have a thriving internet startup community — we are identifying these companies at an early stage in their development," said Barry O'Leary, CEO of IDA Ireland, a foreign investment department.

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