Say it isn't so! Unfortunately, in order to try to get public support for the $1 trillion plan to use taxpayer loans and loss guarantees to further enrich hedge fund billionaires, they're going to create mutual funds that will let you, the poor taxpayer who committed $12.8 trillion to bail out the world's financial system, get some of your money back by going in on these sweet toxic waste deals right along with PIMCO's Bill Gross -- the world's largest bond fund manager who first buys discounted government bonds and then "advises" the U.S. to bail him out for the good of the global financial system.

This offer sounds too good to be true. And that's because it is. As I have pointed out, there are six fundamental flaws with the plan, so it is highly unlikely that it will happen -- add to those six two more:

1. Private investors' fear that the U.S. will change the rules on pay to take away their profits.

2. The new accounting rule that lets banks value toxic waste however they please -- thus boosting the price that any investor would have to pay for that toxic waste.

And what of the state pension funds? 59 state pension funds have lost $1.3 trillion since the stock market peaked in October 2007. Now their pension obligations exceed their assets by $237 billion. So those state pension funds are considering a trip to the toxic waste dump as a way to make up the difference.

If it actually happens, it looks like this deal will lose money rather than make it. So when you wipe off the lipstick, this great offer to invest your money (or your state pension fund's) in toxic waste starts looking like a way to neutralize your opposition to the plan in the short-term -- and lose any extra money you might have lying around in the long-run.

Stop the insanity!

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book is You Can't Order Change: Lessons from Jim McNerney's Turnaround at Boeing.