Peter Schiff is an American economist, stockbroker, author, and financial commentator best known for predicting the 2008 financial crisis and advocating investments in gold.
While President Donald Trump insists the U.S. has it’s greatest economy ever, Peter Schiff argues that Americans’ financial confidence has deteriorated to a record low, even as stock prices remain high.
In an October 11, 2026, report, Schiff points to University of Michigan consumer sentiment data to challenge Trump’s claim that. His central argument is that rising asset prices do not necessarily mean ordinary households are financially secure.
“Not once during these 75 years were Americans as worried about their personal finances as they are right now,” Schiff said.
Keep in mind, those 75 years include the Korean War, the Cuban Missile Crisis, the Vietnam War, the 1970s oil crisis, the Gulf War, 9/11, the 2008 financial crisis and the COVID-19 pandemic.
“Donald Trump says the economy has never been better in history. So apparently, even though we have the greatest economy we’ve ever had, consumers are more worried about their own personal economic circumstances than they’ve ever been,” he added.
“The idea that we have a great economy is pure fiction.”
What Schiff is arguing
- Record-low consumer confidence: The report says the University of Michigan’s current economic conditions index reached a record low in its survey history, which stretches back to 1951.
- Inflation remains a major concern: The reported October consumer sentiment reading fell to 46.3 from 48.1 in September, while one-year inflation expectations rose to 4.7% from 4.6%.
- Stocks don’t tell the whole story: Schiff argues that households with substantial stock holdings have benefited from rising markets, while people without significant investments may still be struggling with living costs and debt.
- Higher interest rates could create further pressure: He warns that elevated borrowing costs combined with substantial U.S. government debt could create problems for the economy and bond markets.
“If times were good, people’s incomes would be rising. Their debt would be falling relative to those rising incomes,” Schiff said. “But the fact that the debts are rising, it’s because incomes are not rising. Families are struggling.”
“People are delusional when they think that what we’re seeing now is the aberration. No, we’ve been living in the aberration,” Schiff said.
“We are in a position where we have high debt and high interest rates. In fact, we have higher debt than we’ve ever had and we may end up with higher interest rates than we’ve ever had.”
