Phase 2, Endocrine Therapy + OSI-906 With or Without Erlotinib for Hormone-sensitive Metastatic Breast Cancer

DISEASE CHARACTERISTICS: * Histologically confirmed invasive breast carcinoma * Stage IV disease * No locally recurrent resectable disease * No symptomatic brain metastases * History of brain metastases allowed provided the patient is clinically stable for \> 3 weeks after completion of radiotherapy AND is not taking steroids or therapeutic anticonvulsants that are CYP3A4 modifiers * Hormone receptor status: * Estrogen receptor and/or progesterone receptor positive tumor by immunohistochemistry (IHC) PATIENT CHARACTERISTICS: * Pre- or post-menopausal * ECOG performance status 0-1 * Life expectancy ≥ 6 months * ANC ≥ 1,250/mm\^3 * Platelet count ≥ 100,000/mm\^3 * Creatinine ≤ 1.5 times upper limit of normal (ULN) * Bilirubin ≤ 1.5 times ULN (≤ 3 times ULN if liver metastasis is present) * For patients with Gilbert syndrome, direct bilirubin will be measured instead of total bilirubin * SGOT and SGPT ≤ 1.5 times ULN (≤ 3 times ULN if liver metastasis is present) * Alkaline phosphatase ≤ 1.5 times ULN (≤ 3 times ULN if liver metastasis is present) * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective barrier contraception during and for 3 months after completion of study therapy * Able to swallow and retain oral medication * Baseline QTc ≤ 450 msec * No other invasive cancer within the past 5 years except for completely resected basal cell or squamous cell skin cancer or successfully treated cervical carcinoma in situ * No malabsorption syndrome significantly affecting gastrointestinal function * No diabetes, fasting glucose \> 150mg/dL, or receiving ongoing anti-hyperglycemic therapies * No concurrent uncontrolled illness including, but not limited to, any of the following: * Ongoing or active infection requiring parenteral antibiotics * Impaired lung function (i.e., COPD or lung conditions requiring oxygen therapy) * Symptomatic congestive heart failure (NYHA class III or IV heart disease) * Unstable angina pectoris, angioplasty, stenting, or myocardial infarction within the past 6 months * Uncontrolled hypertension, defined as systolic BP \> 180 mm Hg or diastolic BP \> 100 mm Hg on two consecutive measurements taken ≥ 1 week apart, despite adequate medical support * Clinically significant cardiac arrhythmia (multifocal premature ventricular contractions, bigeminy, trigeminy, or ventricular tachycardia that is symptomatic or requires treatment) * Psychiatric illness and/or social situation that would compromise patient safety or limit compliance with study requirements, including maintenance of a compliance/pill diary PRIOR CONCURRENT THERAPY: * See Disease Characteristics * Recovered from prior therapy * At least 2 weeks since prior investigational drugs * No more than 4 prior chemotherapy treatments in the metastatic setting * Does not include endocrine therapy or single-agent biologic therapy * No concurrent CYP3A4 or CYP1A2 modifiers * No other concurrent anticancer therapy, including chemotherapy, radiotherapy, surgery, immunotherapy, hormonal therapy, or biologic therapy * Concurrent radiotherapy to painful bone metastases or areas of impeding bone fracture allowed provided radiotherapy is initiated before study therapy