But America came through those tough times -- and soared to a new era of economic growth based on productivity created by technology. In that dismal recession of 1981, few would have guessed that within 20 years, the stock market would trade higher than 14,000 or that Internet technology would revolutionize the way we work, live and learn.
History never repeats exactly, but it does teach us lessons. This has been a different kind of recession from any we've seen before, because it is fueled by an unprecedented level of debt -- something I have warned against in all of my writings for the past 20 years! So we'll need a different sort of resolution.
Remember Newton's laws of motion, which you learned in high school? For every action, there is an equal and opposite reaction. Excesses of debt unfortunately must be wiped out, creating an excess of pain for those who over-borrowed. If America can get through this process without losing the free markets that created such wealth throughout our history, then we will be setting the stage for the next period of real growth.
It is never possible to know the future. Forecasts, predictions and prognostications always are impacted by current events. It is our job to plan for all of those eventualities -- whether ongoing economic slowdown or the next boom that will be triggered by an invention yet unknown.
And we also must be prepared to survive mistakes made by well-meaning politicians and economists. No one political party or economic theory has a monopoly on good -- or bad -- ideas. But we know that economic growth requires a currency that retains its value, laws that protect the values of assets, and markets that can be trusted.
That's what "The New Savage Number" is all about -- creating your own financial security that will help you ride through the tough times, even in retirement. Now it's more important than ever that you understand the risks -- and potential rewards -- of your investments and your entire financial plan. So let's get restarted!
No matter what your age is, take a fresh look at your plans for the future, because no matter how late you start, your future will be so much better if you prepare for it now. And that's The Savage Truth.