Bubbles

Asset bubbles

When we have something like the "dot-com" bubble, whe had unreasonable inflation of intangible assets, stock prices.
While many were able to either cash in their gains (selling to the greater fools) or borrow against therse assets, when the bubble burst, it was, in large just "paper" that disappeared. Not even real paper, just electronic accounting.

Poof
Sure, those left standing when the music stopped in this game of musical chairs had to sell their homes, cars, jsts etc. but the absolute number were small.

The Fed lowered rates and "everyman" was able to move to something else ... Real Estate.

The difference is now that this bubble has burst, there are tangible assets that remain.
Land, homes and buildings that don't just disappear.
They may over time, but most likely they will remain on the market, often for a long time.

The market clearing in intangibables can happen (often does) quickly, in tangables it may take a long time.