The closure of Yazaki is an indication of a world wide economic slow down.
It might look insignificant for just one company to leave Samoa but the world, as a whole is experiencing no growth at all.
The economies of the world are in their worst condition since 2008. Most banks are highly leveraged out that if there is a run to the bank scenario, that will wipe them out to insolvency.
Deutsche Bank is basically bankrupt, they have 47 trillion dollars of outstanding derivatives according to one economist and Germany seems like they are not going to bail them out.
Sounds like Lehman Brothers scenario all over again.
It is just a matter of time when the house of cards come crashing down again. The biggest fraud ever perpetrated on mankind by these banks was the printing of more money under the auspices of stimulating the world economy.
But it didn’t do squat because that money were borrowed by Big Multinational Corporations on almost no interest to artificially prop up their stock prices; while the retirees and Moms and Pops that relies on interest from the banks to subsidize their income were forced to gamble with their retirement savings in the stock market.
The banks got their bail out and bail in when they start taking money away from your savings when they go negative interest rates on you.
Does this affect Samoa?
It can be when investors start pulling their money away from emerging markets mutual funds to a more safe investments like money market accounts etc.
Once the money dried up, you will start to see incomplete projects all over and unemployment will continue to skyrocket.
Leituala Roger B