Italy’s Banking Crisis Is Nearly Upon Us

There is a high degree of probability (approaching 90%, I’d say) that Italy will experience a severe banking crisis in the next few quarters. Perhaps they can stave off the problem for a year, but something will have to be done about the banks.
Italian GDP per person lagging the rest of Europe
Italian citizens haven’t had much fun the past decade, judging from their GDP. You can see on the left side of the chart below that GDP per person has lagged the EU since 1995. Worse, it kept falling after 2009, even as Italy’s neighbors recovered.