Umm, by 2006, the housing bubble began to decline, on it's way to collapse in 2008. What was needed was oversight of the GSE's -- Republicans, who controlled the House, Senate, and White House at the time, failed to pass any.
Both the House and the senate went to Democratic majorities in 2006. The President issued 27 requests for the Congress to deal with the dangerous situation he knew was developing. Chris Dodd and Barney Frank refused and continued to insist that Fannie and Freddie were just fine and no adustment or new regulation was needed.
But our fearless leader and his loyal subjects are all too eager to tell lies about that too.
[ame=http://www.youtube.com/watch?v=hxMInSfanqg]Nancy Pelosi, Barney Frank, and Democrats are Clueless on Freddie Mac Fannie Mae and the financial credit crisis. - YouTube[/ame]
[ame=http://www.youtube.com/watch?v=BC88oox9TBo]Barney Frank Freddie Fannie Flip - YouTube[/ame]
[ame=http://www.youtube.com/watch?v=A18zTHSxGHY]Peter Schiff Vs. Chris Dodd - Fannie and Freddie - YouTube[/ame]
Allow me to correct your mistakes ...
Democrats took over in 2007. By 2007, the damage was done. By 2007, the housing market was already dropping like a rock and foreclosures were already rising rapidly. The time to take action was years earlier.
And your talking points about Frank and Dodd are duly noted, however, they were in the minority party and did nothing to prevent the majority party from passing oversight of the GSE's. Despite Democrats being completely wrong on the issue, Frank and Dodd ultimately represented nothing but two votes against oversight.
Majority party Republicans were in charge ... Majority party Republicans had 3 bills introduced in Congress to address the problem ... Majority party Republicans passed zero bills to add oversight of the GSE's. None of the 3 bills were filibustered. All 3 bills died because they were crappy bills which didn't actually address the problem.