Nouriel Roubini says predictions for a mild recession are 'delusional' as severe financial crisis looms

The indicators of a recession are ringing and key commodities have plummeted into a bear market. There were hopes that an upcoming recession would be shallow.

The famed economist, who called the 2008 financial crash, said that the economy is headed for a severe recession.

According to Roubini, debt ratios are historically high for advanced economies and climbing, while bailing outzombie corporations puts the economy in danger.

Stagflation was accompanied by low debt ratios and the debt crisis of 2008 resulted in falling inflation.

Roubini said that the idea of it being short and shallow was completely delusional.

His warning goes against some of the predictions made on Wall Street for a mild recession.