Thats life man, plain and simple. Dont take a mortgage you dont understand and cant payback, people lose jobs all the time. Ive been laid off, had friends laid off, lost money, made money, its life.
YOu dont subsidize bad times to keep people from pain. Pain breeds innovation, determination, drive, work ethic, etc.
Its a slippery slope to say "we will just pay everyone $9 an hour to solve the economic problem".