Panicky economic challenges are worldwide. It has been decades since economic climates have been in such shambles. Pension and retirement savings are eroding; homes galore are in foreclosure; jobs are being lost — some forever; the auto industry and financial institutions need federal bailouts. Panicky economic challenges are here.

The Dec. 31, 2008, issue of Financial Times focused on this glaring topic: “Recession, recovery, trade war and artificial life — welcome to 2009.” Business writers at the paper raised lots of penetrating questions that will elicit discussions. Some are:

• Will the recession end in 2009?

• Will oil end the year above $40 a barrel?

• Will Obama’s New Deal work?

• How far will central banks and the Federal Reserve go during the financial crises?

• Will U.S. carmakers survive?

These are very serious questions, and each must be addressed to create investor confidence in financial transactions. But more than that right now, multilateral enactments must be put in place to avoid further dampening of financial confidence and public trust. Solutions to the financial crises will be a gift for 2009.

Regardless of the panicky economic challenges at hand, most people soon realize that solutions follow crises. Crises and economic challenges provide opportunities to right the ships heading in inappropriate directions. Wrote American inventor Edwin H. Land (1909-1991): “If you are able to state a problem, it can be solved.”

The current recession affects worldwide economies. But there are ways to deal with a recession until the devastating effects of it subside. Here are seven suggestions to consider:

1. Project your passion for an economic recovery. Troubling economic challenges will not last forever. But, at the same time, remain vigilant for a lingering economic slowness.

2. Read up on the Bernard Madoff scandal. Learn valuable lessons from it. The investors in that scheme reportedly had life savings wiped out — to the tune of about $50 billion.

3. Fully assess your investment risk tolerance. Some investments are safer than others. Determine which are which, and proceed with financial caution.

4. Live beneath your revenue stream. This will be distasteful to some people, particularly the young. But everyone will sleep better by living beneath your revenue stream.

5. Insure your financial future by casting nets around aspects of your finances, e.g., 401(k) retirement accounts, long-term care plans, life insurance and cash reserves.

6. Be wise in purchasing a home. A home is a major investment. If less than 20 percent cash or equity is available for a down payment, defer the purchase.

7. Applaud the roles of governments’ bailout monies. If certain industries were to fail due to internal controls, economies worldwide would be in worse conditions than they are.

Panicky economic challenges are aspects of life to be lived with, even if they are not anticipated. Do not panic; use economic challenges as protective guards not to be caught off guard. Do not panic!

• Reach T&D Columnist Howard D. Hill, Ph.D., via www.educationconsultant@sc.rr.com

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