Regular readers don’t need me to spell this one out for them. It’s like we’re watching a movie where the ending has already been spilled and the only people surprised are the ones performing! Italian bond yields are hitting 6.65% today. The inevitability of a 7% yield (the generally agreed upon point where yields become unsustainable) is just bps away. The bond vigilantes are at the door Mr. and Mrs. Merkozy. Which will it be? Break-up? Or fiscal union? My guess is they won’t be too patient waiting for their answer. 6 months might be a very generous estimate….