Bank of America Warns: Markets Resemble Pre-2008 Crisis

Bank of America warns that current market conditions are reminiscent of the period before the 2008 financial crisis. Strategist Michael Hartnett points out that rising oil prices and concerns about private lending are fueling fears.

According to Hartnett, the price of oil had doubled to $140 a barrel in August 2008, while at the same time there were upheavals in the mortgage market, with the collapse of banks such as Northern Rock and Bear Stearns.

The conflict in Iran, which began on February 28, has led to a rise in oil prices of over 60% this year, causing concerns about inflation and the risk of stagflation. Concerns about banks' exposure to private lending are also increasing.

Hartnett mentions that the European Central Bank raised interest rates on the same day that oil prices peaked in 2008, calling the move "one of the biggest policy mistakes of all time."