What does it mean when the International Monetary Fund (IMF) considers issuing bonds to raise cash? Obviously, the organization would be seeking more money to pursue its agenda, but what else could be inferred by this? How would the dynamics of world economic power wielding be affected? What effect could this have on the natural ebb and flow of free market capitalism? How would U.S. Treasuries be affected?

This possible bond issue was examined recently by Bloomberg.com. The Bloomberg article points to what I think is the most significant aspect that an IMF bond issue would present. I'm concerned that IMF bonds would directly compete with U.S. Treasury bonds. That possibility is fodder for a great deal of speculation.

A lot was said this past week in regard to the SEC attack on rumor mongering and willful misrepresentation of facts for the benefit of naked short sellers. One point that I'd like to make perfectly clear is this: The SEC's indicated desire to quash the spreading of false negative information by, and for the benefit of, manipulative short sellers, is nothing even remotely akin to a First Amendment issue. The First Amendment does not give protection to slanderers, liars, and sabotage artists. I'd also like to make clear my opinion that honest short selling is a positive, healthy, and necessary practice. I believe it helps to define and benchmark real value within the markets.

The Los Angels Times reported that SEC Chairman Christopher Cox may have his hands full in the wake of a measure that protects nearly two dozen large financial firms from naked short selling. The measure requires "anyone effecting a short sale in these securities (to) arrange beforehand to borrow the securities and deliver them at settlement." It's a rule that is long over due for enforcement and that shall most probably, at least temporarily, lay to rest some serious market abuses.

Mark Gilbert, a columnist for Bloomberg.com, has an intriguing piece looking back at the past six months. His conclusion: it was investor Nirvana.

Bonds, equities and even gold did well.

Why the good times? First, there was finally stability in energy prices. Next, there were no disasters, such as a hurricanes or major earthquakes. Also, the US consumer continued to spend, spend, spend. Finally, private equity firms continued to spend, spend, spend.

Have we reached a New Era?

Probably not.

It's a good bet that volatility will return in 2007 (hey, wasn't the first half of 2006 pretty tough?). Or the housing market may deteriorate even more. Or the Fed may not lighten-up on interest rates. Or a massive private equity deal might blow up.

Markets, by nature, go haywire sooner or later.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.