There are clearly better ways to deal with the pain of deleveraging than creating more leverage. The main problem is that the borrowed money is going to malinvestment (e.g. real estate, speculation) and not business (which can't get loans at ANY interest rate). The pain will have to be dealt with through tax policy not monetary policy. For starters, eliminating long term capital gains taxes would gree up a lot of money. Corporate taxes would need to be decreased too to free up money.
Which interest rates at what point?