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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (51385)	1/25/2006 2:46:30 PM
From: shades	Respond to of 110194

=DJ Calpine Judge Says He'll Approve $2B Chapter 11 Loan . By Christopher Scinta Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--A federal judge said he would give final approval to energy giant Calpine Corp.'s (CPNL) request for $2 billion in financing to help it sustain operations during its bankruptcy case, overruling objections from some of the company's major creditors. Chief Judge Burton Lifland of the U.S. Bankruptcy Court in Manhattan agreed to sign an order approving the loan from Credit Suisse First Boston and Deutsche Bank once the final version was submitted to him. Calpine had argued it needed the loan to buy natural gas and fund other costs to keep its power plants up and running. Lifland already had already given Calpine approval to use $500 million of the total on an interim basis while creditors reviewed the terms. Lifland also signed off on Calpine's request to use $200 million of cash on hand that its creditors could make claims against - known as cash collateral. After quite a bit of negotiating in recent days, Calpine managed to reach agreement with first-lien and second-lien noteholders, some of its project lenders and the committee of unsecured creditors on how to protect their interests in the cash, said Edward Sassower, an attorney from Kirkland & Ellis LLP who represents Calpine. By the time Wednesday's hearing began, 13 of the 19 objections filed against the loan and cash collateral agreement remained. Investment banker Ken Buckfire, a managing director with Miller Buckfire, advised Calpine on the financing and said the terms were very favorable. "The pricing on the loans is extremely cheap," Buckfire said, considering Calpine's finances.

To: GST who wrote (51385)	1/25/2006 4:12:31 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Once again you badly mistake my position. Horribly so. "The Austrian economists claim that the only cause of inflation is the increase of the money supply relative to the output of the economy.1 These economists outright reject the theories behind cost push inflation, wage push inflation and other common theories of inflation. From their perspective, the correct policy is not based on the total quantity of money, but to set a particular quality of money, a relationship between the MZM, that is "Money to Zero Maturity" and the growth of the economy. Because controlling the available immediately spendable currency is crucial to price stability in this view, economists who subscribe to this idea often advocate the return to a gold standard." I have no use for MZM nor does Shostak I do not think Kasriel uses it for anything either. It is a heavily flawed measure of money. Wages will indeed push prices and I have said so many times. Furthermore I have repeatedly said that rapid expansion of wages and jobs would put a kabosh (at least temporarily) on any deflation scenarios. I do not see rising oil prices as inflationary unless they are a direct result of a rise in money supply. Inflation: dictionary.reference.com A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services. That definition is more or less reasonable. The problem with it of course is is deciding why prices are rising. If oil prices spiked to $150 overnight because of an overthrow in Saudia Arabia that would be a hugely deflationary event. It would crush spending, crush housing, crush the stock market, and cause mammoth losses of all kinds of jobs. Demand for goods would plunge and inventories of stuff would skyrocket. Prices of other goods would fall. My position is logical, consistent, and easily defendable. Mish