Inevitably following each of the great bubbles was a price shrivel. Then many commentators talked about how people “lost their wealth,” with statements like “in the housing crisis households lost $7 trillion in wealth.” But since the $7 trillion was never really there in the first place, it wasn’t really lost.
He has a chart that shows that the biggest financial bubbles of the past 60 years occurred during the period we call the Great Moderation. Thus, during a period of macroeconomic stability, we had financial instability. Hyman Minsky would not have been surprised.