Exactly. It is sad that he believes it but I have read when someone, i.e. Petey, lies OVER and OVER, it ends up being believed by the liar.
I know it has been said before but I do believe, really believe, he is delusional, not to mention being a psychopath/sociopath.. all just my opinion, of course, I do not have a degree in psychology. (but really, Petey isn't hard to DX, is he? ;-) )
It would be good if he would use some of the money he has stolen from investors to seek counseling but I am sure that won't happen.
There is nothing wrong with Petey, it is everyone else that has the problem, just ask him.