We sold U.S. stocks and bonds to our clients and raised money for them in U.S. capital markets. Few overseas markets mattered. Even the biggest U.S. companies had but a limited overseas presence. Now, Fortune 500 firms are headquartered in the U.S. but are truly global in nature. When I first joined an investment bank, I had to get a partner's signature to make an overseas call.
Today traders live on global trading wires, and capital markets are integrated worldwide.
Global markets and technology have brought us together as never before. Countries that were economically irrelevant to us 25 or 30 years ago, today provide great opportunities for American businesses and consumers. But, as demonstrated during the past two years, these same nations can also give rise to financial instability that can threaten economies around the world, no matter how strong. A Latin American finance minister explained this dilemma to me last year. How, he asked, do I explain to my people why the value of our currency is shrinking and our interest rates are rising, all because the Russian parliament failed to raise taxes last week.