• Markets should brace for a period of decline that echoes crashes of the 1970s and 2008, according to Nouriel Roubini.

• He predicted that central banks will "wimp out" from fighting inflation, fueling a financial crisis.

• "It's going to get ugly, the recession, and you'll have a financial crisis," Roubini told Bloomberg.

The global economy will experience a period of decline that combines the worst aspects of the 2008 financial crisis and the 1970s, Nouriel Roubini has warned.

The :Dr Doom" economist said Wednesday that he expects red-hot inflation to lead to a recession – before major cracks start to appear in financial markets.

"It's going to get ugly, the recession, and you'll have a financial crisis," he told Bloomberg's Odd Lots podcast.

Roubini sees supply-side shocks including the coronavirus pandemic and the war in Ukraine as drivers of global stagflation, which refers to a combination of soaring prices and sluggish growth.

That would echo the economic pain of the 1970s, when efforts to tame high inflation plunged the US into a deep recession.

"Inflation is not going to fall fast enough because you have the negative supply shock," Roubini said.

"Remember when you have negative supply shock, you get a recession and high inflation," he added. "We're not going to get a fall in inflation that's rapid enough to go to 2%."

But Roubini also compared the current outlook to the 2008 crisis – when the bankruptcy of Lehman Brothers and other financial institutions fuel led a major market crash. European bank Credit Suisse is one major bank under significant pressure in 2022, with its shares plummeting by over 50% as investors fret about the bank's liquidity.

"This is just the beginning of that pain," Roubini said. "Wait until it's real pain."

"And then you have a major financial institution that may crack globally, not in the US maybe now, but certainly internationally," he added. "There are a couple of firms that are huge and systemic. They can go under. You might have another Lehman effect."