Decades Of Outsourcing Have Devastated The American Manufacturing Base.
As A Result The Monster That The USA Has Created In The Name Of Outsourcing And Offshoring, Has Grown So Big And Powerful, That It Is Now Impossible For The US Companies To Become More Competitive Than These Low Cost Countries.
Once investments in the US turned bad, more money had to be invested in the US, to maintain that fixed proportion.
In order to invest more money in the US, money had to come in from somewhere. To make up their losses in the sub-prime market in the United States, they went out to sell their investments in emerging markets where their investments have been doing well.