The irony in your situation is that your manager is the biggest mistake of all. One of the most important managerial roles today is that of coach, and your manager is more of a tormentor than mentor.
For people to grow, mistakes are an inherent part of the process. And when an error is met with terror, employees ultimately complete only the most narrow and low-risk aspects of their jobs, and soon become dissatisfied. Your manager is taking you down this path.
In dealing with him, be sure to have a clear understanding of his expectations on each project, and devote extra effort to being as careful and accurate as possible in your work.
The next time that he is in an approachable mood, you and your associates should meet with him and let him know that your objectives are the same as his, while adding that it can be difficult to meet these objectives because of his reaction to errors. Tell him that you need his help on this problem, and leave it at that. He is the only one who can change his behavior. If you tell him how to act, you will be making a mistake.
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