The debt situation on either side of the Atlantic is unlikely to improve for some time, Anthony Fry, UK Chairman of Espirito Santo Investment Bank told CNBC. But Fry stressed that the economic difficulties of the US could not be compared to the sovereign debt crisis in Europe because the Federal Reserve still retains control over monetary policy, the dollar remains the reserve currency of the world and the US is the nation with the best prospects for growth in the Western — and wider — world.
"There is no doubt that the US economy remains the most powerful engine for growth, certainly in the Western world and I would argue, given the totality of the opportunity it has… the world generally," Fry told CNBC.
On the debt crisis within the euro zone, Fry was pessimistic, saying he believed a resolution was still a long way off and while European policymakers failed to make decisions, global markets would remain volatile and eventually "the sky would fall in".
"The market is reflecting the uncertainty within the European Union, that's what's going on here, the market is saying: 'Do you know what? We're going to feel good or bad, day-by-day, depending on what's going on, there needs to be a resolution," Fry said.
He added: "I wish I was saying it's going to happen soon… this is the longest running crisis in which people have been giving false dates, people turning up for summits saying it has to be resolved, nothing happens and people go away and the sky doesn't fall in… sooner or later the sky will fall in, I'm just not clever enough to know when it's going to be."
Read more at http://www.cnbc.com/id/45398839
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