What is the potential impact of US foreign policy on financial markets?
Senator Lugar: The global financial system has changed markets tremendously simply because of the ease and speed with which people can move capital around the world seeking greater returns and safer investments. In the futures markets, people are groping with future uncertainties. But what does this mean? In some instances, it may mean that they are trying to hedge against the possibilities of disaster. So, my hope is that somehow we can fashion, at least for our own national security and in advance of whatever these potential situations are, a crisis management study for our financial markets so the players in these markets know what they’re going to do in advance of the disaster’s occurrence. I would say, for example, a non-foreign policy crisis, such as the stock market crash of 1987, revealed to most that there were flaws in the crisis management of our financial markets, and that there was certainly a sense of impending disaster for many people in terms of their financial situatio
