"Cancelling the commons" is a myth fueled by a few preferred shareholders who want to scare common shareholders into selling the commons and buying preferreds. They have a financial incentive..they want their shares of preferreds to go up and then dump them.
Its a scare tactic, nothing more.
The government had an opportunity to cancel the commons and put the company in receivership, but they did not for very good reasons: They did not want to assume the commons of freddie and fannie's 5 trillion in combined liabiities. That would add 5 trillion to the governments already too high 21 trillion in debt, as the government would then assume this potential liability.
Nothing has changed..except the government debt is still larger than it was in 2008 or 2012. The government still does not want an additional 5 trillion from the gse twins as a liability.
Right now, fannie shareholders accept the risks with fannie..that people can not pay their mortgage, default, and the home can not be sold for enough to pay the mortgage because fannie is also an insurance company..insuring the mortgages..by selling and collecting pmi (private mortgage insurance) from homeowners.
Unfortuantely, with the cship and the NWS the government takes on some of this liability. The answer is release from cship and end the NWS.
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