Banking mortgage subprime crisis

Having been in the Real Estate residential business for five years, I believe the people would stay in their homes provided they could afford to pay their mortgages. The subprime loans and derivatives associated with them have caused a debacle in the "banking"and "investment banking industry". The foreclosures have reeked havoc with the balance sheets and write downs
have created a liquidity problem as well as a credit crunch.
No one has addressed the root cause, which is to stop the foreclosures. How one would ask can this be done. A number of ways and not by bailing out the banks.
People are not going to put ten percent down under the proposed bailout program the government proposes and then give them a fixed thirty tear at a fixed rate. Silly, no stupid thinking ! They bought their new homes with a dream of now being able to buy a home (American dream) well guess what they did not have down payments because they did not have the money,however they were able to pay the mortgage payment. Hum, now do you think these people would go into foreclosure if they could pay the mortgage payment they started with ?
So the ARM's came due at much higher rates they could not afford, dah what could they do...
Foreclose or restructure payment schedule so they could still pay the same mortgage payments
they started with. If not they go back to "renting" and most likely paying same amount and not owning home and no tax write off for mortgage. So to restructure payment something would either have to be done in the "financial" banking world to have this occur.
Possibilities:

Instead of thirty year mortgage have a sixty year mortgage, hum 60 year bond.
Payments would come in line with what they started with. What would a 60 year payment at 5.5% look like in comparison to a thirty ?

Feds to drop lending rate by 150 basis points to cause lending rate to possibly go down to 4.5%
and then 60 year mortgage with this reduction . WOW ! Plus people would be flocking to the banks to refinance at lower rates. Hum, profits for the banks !

Change the rules how the banks handle financial crisis and write downs on their balance sheets
so they do NOT have such HUGE write downs, sends PANIC through world markets .

As far as BALANCE sheets go everything is based against ASSETS . How about putting something on the books that accounts for PEOPLE as ASSETS. There are approximately 6 billion people on this planet, where is their VALUE accounted for in the FINANCIAL system???
Buildings come and go and so do people,however babies will continue to show up at exponential rates. A lot of VALUE in those babies.