Debt Slavery-Or not?

Are moral obligations an issue?

Avalon writes: 'Mish, I'm very disappointed that you don't think people are morally obligated to try to honor their agreements. Just because it's legal doesn't make it right.'

Let's explore the issue of moral obligation with a series of questions.

• Where was the moral obligation of those willing to lend money to someone who they knew could not possibly afford the house?
• Where was the moral obligation of those willing to lend money to someone when the lender did not care how overpriced the home was?
• Where was the moral obligation of those willing to lend money to someone when the lender explicitly knew how overpriced the home was?
• What are the moral obligations homeowners to provide for their family the best legal means they can?
• Suppose someone could "afford" to make payments but at the expense of say health insurance or better schools? What's the moral obligation on that person?
  
• Does moral obligation only run in one direction?
• Should someone have a moral obligation if he signs a contract with a thief?