Economist Warns of 2026 Collapse

May 6, 2026

Veteran economist Gary Shilling, known for accurately predicting the 1969-70 recession, is warning that the United States may be heading toward another major economic downturn by the end of 2026. Shilling points to several troubling indicators, including a frozen housing market, weakening consumer spending, and a sharp slowdown in corporate investment. He also warned that stock prices remain dangerously elevated and suggested a market correction of 20 to 30 percent would not be unusual by historical standards.

One of the key concerns is the growing pressure on American households. High interest rates, rising foreclosures, and limited affordable housing inventory continue squeezing both buyers and sellers. At the same time, companies are pulling back on long-term investments, signaling declining confidence in future economic growth. Inflation also remains stubbornly high, further straining consumers whose willingness and ability to spend may already be on “thin ice,” according to Shilling.

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