This is a watered-down 'vanilla' explanation of the real cause of the unrest. The real cause is that the Chilean system is offering sub-prime education at a high cost, essentially the same phenomenon that happened in the real estate bubble in the US. Chilean students and their families realize this. The system has been and continued to be fundamentally rigged, and is not sustainable (metal commodities boom notwithstanding).
What? You start the paragraph saying that high debt may not be related to high interest rates and then you go on to say beware of the risk of high interest rates! And you connect this contradiction with "Moreover" as if the negation of the former followed from the former. Please remain sober. :-)
While it is true that more young Chileans are getting tertiary level education, this progress is flawed because of two related structural weaknesses. First, the quality of students is generally low because of poor primary and secondary education. Second, the growth in the tertiary student education is based on a -from a national perspective- flawed business model that seeks to maximize profit of the owners of educational institutions at the expense of quality of the educational service provided.
This is a well-thought best solution given the constraints imposed on Greece and Europe.
The previous commentators prefer that Greece stays in the Euro, given the feasibility of its salvation by Europe because of its small GDP share, or because cultural deficiencies prevent nominal-devaluation-driven growth.
They are wrong and Roubini is right. Even though Greece makes up for only 2.5% of Europe GDP, Greece cannot be subsidized out of its depression. It has to recover a sovereign status and growth via nominal devaluation with its own currency. The cultural objection to Roubini´s scheme does not stand either. Growth and competitiveness will be quickly and automatically restored by a nominal devaluation on a sovereign currency. No need for cultural changes. The latter are probably necessary in the mid- to long-term. But right now, this year and next, the only solution is a scheme pretty much similar if not identical to the one proposed by Roubini.
The only additional thing that might be worth mentioning is that the most likely winner of next elections, Mr. Tsipras, knows all this and is promising a package consisting of staying in the euro and re-negotiating the terms of the bailout merely to anesthetize the electorate until he gets into power. When that is achieved, Roubini´s scheme or some close variation will soon be effected.
Greece can base a growth policy after exiting the euro on shipping and tourism, as well as food-related industries. Tourism is a major industry in Europe. It has all by itself sustained the much larger Spanish economy during the crisis years. With some investment in the roads and other public spaces in coastal areas (which are obviously a little run down) the tourist offer will improve substantially in quality. Greece has the largest merchant navy of the world. Its insular geography may allow further development of fishing and aquaculture. Greece is currently the largest aquaculture finfish producer in Europe. though most of its exports in this industry go to Spain and Italy. The option of diversifying to northern Europe is there, the potential is there.
Greece just need an opportunity to become a monetary sovereign. It has to default and start to build up with its resources. Thanks to Roubini for a piece that has looked at all the important aspects of Greece's situation and the way out.