Still, he faulted the economy's ongoing problems as part of what he called "scapegoating" by ordinary investors, politicians and some on Wall Street.
Current conditions "will force us to take a pretty strong look at the character of a nation," Roach said, with that backdrop making it all the more difficult to solve the U.S.'s long-term budgetary red ink. "There's no silver bullet…we have a polarized country," he said. (Read more: Obama, Boehner Meet on 'Fiscal Cliff'.)
Thus far, Treasury bond investors don't appear concerned about the federal government's ballooning debt. Yields on benchmark 10-year notes and 30-year bonds remain close to historic lows, a measure of the relative safety markets perceive in U.S. government debt.
"If you look at the 10 year treasury, I think it's obvious the rest of the world is still coming to the U.S. to put money," said Starwoods CEO Frits von Paasschen to CNBC this week. "We need to continue to make that happen." (Read more: Rein in Debt or European Crisis Looms: Starwood CEO.)
Doubts, however, are growing about how much forbearance investors will continue to show the U.S. government for its budgetary incontinence.
Government bond yields rose this week in reaction to the Fed's commitment to ultra-accommodative monetary policy, despite the fact that interest rates should have fallen because of the central bank's pledge to stick to its massive bond buying program.
Meanwhile, the euro set a seven-month high against the dollar on Friday, in spite of the euro zone's relentless debt troubles. Although the dollar is seen as a safe-haven in times of distress, the greenback's weakness reflects both expectations of more Fed easing, and the lack of appetite for US assets.