If the note holders did not do their homework, if they made bad decisions, then why should I as a taxpayer bail them out. Does conservative apply only when it does not hit someone's pocket. Life does not or should not operate in that vacuum.
I am not asking the government to bailout the note holders. I am asking the government to respect contract law. Note holders bought the loans under a contract. You are advocating that government discard the contractual terms. You are asking for a bailout. Note holders have lost large amounts. They will probably continue to lose large amounts. The government under a populist banner wants to strip away the contract to cause note holders to lose even larger amounts.