Rich people have most of their assets in equities, not loans or fixed-income securities. As a general asset class, business equity is usually a pretty good hedge against inflation.

It can be so-so at times. IIRC, there was a 5-10 year period in I think the 70s/80s when the S&P 500 returned nothing. Course, it took off after that.

Hoovervilles were not filled with rich people. In fact, in 2008, expensive cars barely saw a dent in sales cause the people that can afford them are heavily resistant to shocks of that caliber. Rich people are most definitely not creditors. Banks are. Rich people don't give out loans like banks. The rich don't get affected by poorer people who declare bankruptcy. The rich lose when poor people think money is greater than whatever BS commodity they're peddling that they can't recoup losses trying to sell it. That's why panics were more common back in the day. They're virtually a thing of the past nowt hat the Fed just prints money making everything think you gotta invest constantly or just lose money to inflation.

Banks aren't institutions of the rich?? The rich will be perfectly insulated if the financial system crashes??

Banks are institutions. Rich people are not banks and not creditors, the institution is.

Is it that everyone thinks that, and it's not true, or is it true but doesn't have to be true?