We saw in the fall of 2006, the media and associated public culture celebrate the election of Zer0 and the landslide win of Democrats in congressional elections that brought strong majorities in both the House and Senate. Under the leadership of Chris Dodd in the Senate and Barney Frank in the House, the speculative housing market was deregulated for the government-sponsored enterprises such as Fannie Mae and Freddie Mac that controlled trillions of dollars in American mortgage equity. The regulation that was eliminated was specifically intended to protect the free market from government interference. Good regulation was destroyed for its intended purpose: Causing the housing market in the U.S. to devolve into a dangerous leveraged global gambling operation that financed a vulnerable house of cards over European banks.
The leadership of Fannie Mae and Freddie Mac knew that the election of Democrats in the House and Senate would prevent any further calls by the Bush administration holdovers to tighten the regulations on these dangerous GSEs. This enabled the Democrats to orchestrate the collapse, which we saw in the fall of 2008, with the decline and collapse of the U.S. and global economy. The financing of American homes saw the evaporation of 6 trillion dollars in values. The house of cards fell just like it was orchestrated.
Obama wasn’t elected until 2008. Bush was president when it collapsed.