Let me get this straight…

1. Central banks are basically backstopping any entity that may cause systemic risk. But if you’re not big enough to cause systemic risk, you’re SOL.

2. Big banks who have ample access to capital due to their position are now stepping in to prop up the smaller banks.

3. The FED wants to cause unemployment, but they’re unwilling to have those unemployment come from large entities that are actually mismanaging their risk.

My question is, where is this unemployment going to come from?

It feels like in the end, small to medium businesses will continue to suffer as the FED continues to raise rates. But when they go down, no one will come to see he rescue because they’re not big enough to cause systemic risk.

Isn’t this the same as what happened in 2008? Too big to fail vs everyone else.