Economists Warn New Crisis Looming Over U.S.

The report was compiled by a panel, including Rob Johnson of the United Nations Commission of Experts on Finance and bailout watchdog Elizabeth Warren.

The report, commissioned by the nonpartisan Roosevelt Institute, urges more stringent reforms. It cautions that financial regulatory reform measures proposed by the Obama administration and Congress must be enhanced to prevent banks from continuing to get involved in risky investments that caused the downfall of the U.S. economy in 2008.

According to ABC News, the report says that the United States is now immersed in a "doomsday cycle" wherein banks use borrowed money to take massive risks in a bid to pay big dividends to shareholders and big bonuses to management – and when the risks go wrong, the banks receive bailouts from the government at taxpayers' cost.

"Risk-taking at banks," the report warns, "will soon be larger than ever."

Unless stricter financial regulatory measures are introduced, "another crisis – a bigger crisis that weakens both our financial sector and our larger economy – is more than predictable, it is inevitable," the report cautions.