I'm trying to ignore the food and housing issues and separate my (albeit admittedly small) humanitarian (feminine? ) side from my problem-solving, heartless (male?) side, btw! I don't think I really could be the person who actually makes the decision to throw people out onto the street, myself.
What I'm wondering is:
Let's assume that we give these people a 2-year repayment holiday, we borrow loads of money to keep the economy going (ie. to keep as many businesses afloat as possible), we keep house prices up as high as possible (by reducing interest rates), we keep borrowing money at the same rate, etc. etc.
What jobs do you think these people will have in 2-years time? Why should all the jobs that are being lost now suddenly re-appear?
The problem is that for the last 20 years, through "economic growth", the country and all it's residents have been spending much more money than they generate. That is NOT a sustainable model (how can the cost of living - house buying, etc. - go up so much faster than the generation of income?), so trying to do everything we can to drag it out just makes no sense to me!
The only solution I can see is for the average person, and the government, is to come back down to a sensible level of spending.......
Edit:
This post by SteveR in the GBP-YEN currency discussion summarises nicely what the effect of continuing to drop the interest rate will have too!
Japan's recovery over the last 20 years, and the US recovery from the great depression last century were only because the countries had good manufacturing export industries to fall back on.