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Tom Becket, chief investment officer at PSigma Investment Management, described the situation in the US - which looks to have been resolved - as being pantomime politics, but stressed that the problems in Europe are much more likely to lead to issues in the short term.
He explained that a debt default is when a borrower stops paying back money to whoever has lent them the funds.
In his view, European debt defaults will definitely take place soon, although he added that they may not occur this month, this quarter or even this year.
"I think it's serious for the world in general. UK private investors should definitely be worried about what is happening on both sides of the Atlantic," Mr Becket added.
President Barack Obama has made a statement on Sunday (July 31st) revealing that talks between congressional leaders had been successful.
Posted by Clive Arneil
