Another day -- another study.  Stan Liebowitz, professor of economics and director of the Center for the Analysis of Property Rights and Innovation at the University of Texas, writes in an op-ed piece that "the most important factor related to foreclosures is the extent to which the homeowner how has or ever had positive equity in a home."  He says that his analysis of foreclosure data shows that subprime loans, upward resets, and so-called "liar loans" were not the primary cause of the current foreclosure crisis, and hence current government programs are "misdirected." It is interesting to note that Professor Liebowitz' analysis concludes that 51% of all foreclosed homes had prime loans.  He reports that his analysis of foreclosures during the second half of 2008 shows that while 12% of the homes had negative equity, they accounted for 47% of all foreclosures.  Professor Liebowitz' reasons that negative equity, by itself, is not an indicator of a foreclosure, but it implies that the borrower is more likely to walk away from the loan.  He argues that current government programs (i.e., Making Home Affordable), and federal efforts to keep interest rate low, are misdirected.  Driving mortgate payments down to 31% of income will...

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