<i>This article makes a good argument that free markets don't work on morality, instead they are rooted in the assumption that everyone acts in their personal best interest.</i><p>I read it with just the opposite meaning. I understood it to say that the actual, observed behavior in the mortgage market is that howeowners are being moral. The Fools seem to question <i>why</i> people would act following their morals rather than purely financials.<p>And this points to one of my favorite misunderstandings of economics, and one that I'm surprised an economist would fall for. Economics is NOT about just money. It's about why people make a choice for one thing, foregoing another. And it's all tied to what people <i>value</i>.<p>It seems to me that this article validates that people really do value behaving morally, having a clear conscience. And I'm glad, because I don't want to live in the world where people take advantage just because they can.