Peter Grandich, the self-described ‘Former Wall Street Whiz Kid,’ is feeling bearish. Despite a rising stock market, Grandich sees a disconnect “between Wall Street and Main Street,” he told Drew on The Drew Mariani Show. Grandich calls the U.S. economy ‘K-shaped,’ meaning, “There’s a small percentage, the way upper echelon, that continues to do well while most…of the working class is struggling,” he said.

In his practice, Grandich works with clients who own “small to mid-sized businesses,” and “most of them are talking about things either being worse or the worst it’s ever been for them, including COVID,’ he told Drew. “I can’t find any of them in any industry in any section of the US talking about things being better.”

Debts and Deficits

For many years, Grandich has been sounding the alarm about the federal debt, which hit $39 trillion in March, and is quickly on its way to $40 trillion.

Last month, the nation’s debt to GDP ratio exceeded 100%. That means the nation owes more on its debt than it takes in. One report in the New York Times attributes the issues to the country’s aging population, “which has driven up costs across government.”

State Issues

Grandich is also concerned about local money management. “Half of all states can’t balance the budget,” he told Drew.

That number comes from a report from Truth in Accounting, a nonprofit that offers “comprehensive analysis of government fiscal data.” According to their 2025 report, many states use creative accounting to achieve a balanced budget, like excluding “future pension obligations” from their budgets.

Consumer Concerns

Governments aren’t the only target of his worry. Grandich says too many Americans live beyond their means. Despite earning more money, Americans have “spent as much if not more.”

Part of that increased spending is attributable to persistent inflation and cost concerns. Last month, consumer confidence dipped to 44.9% down from 49.8% in April. According to the survey from the University of Michigan, 57% of consumers mentioned “that high prices were eroding their personal finances.”

“We have to live within our means, not outside of our means,” Grandich told Drew.