Peter Schiff Calls Trump's Freddie and Fannie Plan 'One of the Worst Economic Decisions Ever,' Predicting '2008 Will Seem Minor'

Peter Schiff's Warning: Economist Peter Schiff cautions that President Trump's plan to unify Fannie Mae and Freddie Mac could lead to economic risks greater than those seen during the 2008 Financial Crisis.

Implicit vs. Explicit Guarantee: Schiff argues that Trump's proposal would transform the "implicit guarantee" of government support for these mortgage giants into an explicit one, which he believes could have disastrous consequences.

Moral Hazard Concerns: Schiff warns that merging Fannie and Freddie could create a significant "moral hazard," potentially leading to more severe financial issues compared to those before the Great Financial Crisis.

Contrasting Views: Hedge fund manager Bill Ackman supports Trump's plan, suggesting that the merger could lower mortgage rates and reduce government oversight costs by consolidating the institutions under one entity.