Dr. Doom predicts more financial crises to come

New York University economist Nouriel Roubini -- the famed professor who predicted the widespread collapse of the financial system , which earned him the title Dr.Doom -- on Monday said that financial crises are an integral part of capitalism and more of them should be expected. 

"They are not the exception, but rather the rule," he told Spiegel Online International. "Many elements vital to capitalism, like innovation and risk-taking, also trigger frequent collapse. And what we just went through could get much worse in the future... Probably we will have even more crises in the future." 

Roubni said monetary policy should be tightened, leverage must become less vulnerable, and regulations need to be strengthened to help lessen the risk of another meltdown.

"What I am proposing goes back to Glass-Steagall Act types of restrictions between commercial and investment banking, regulations that already existed until about 10 years ago. They worked well," he said. 

Roubni said the financial reform debate taking place in Congress is a "good start." He also supports the idea of stopping firms from offering a broad array of financial services. 

"The financial supermarket model obviously has not worked," he said. "An institution where you have, all in one place, commercial banking, investment baking, hedge funds, insurance and lots of other financial services becomes too complex to manage. No CEO can effectively monitor that."