This is an extremely important point - there was an epic mass delusion: Real estate can only go up. It permeated not only all of finance, but all of politics, regulators and the general public. The very same people who would have laughed the president out of office are somberly acting indignated that bankers get clean out of the mess they made. Everyone is washing their hands, and the one thing everyone can agree on is that we like banks the least.
I think Upton Sinclair said "It is difficult to get a man to understand something, when his salary depends upon his not understanding it!"
Everybody loved the real estate bubble. We were all going to be rich forever and not have to do any work.
I think even if the President (regardless of party) had tried to stop the bubble, he would have been laughed out of office.