Matt notes that some folks are shaking their pitchforks and demanding that the public at large be allowed to participate in the Treasury’s scheme. And indeed, as Matt notes, Treasury says:

A broad array of investors are expected to participate in the Legacy Loans Program. The participation of individual investors, pension plans, insurance companies and other long-term investors is particularly encouraged.

Though who knows exactly what mechanisms will be required to get individual investors involved. But I don’t really understand this line of thought. For one thing, taxpayers stand to enjoy half the gain on the plan in any case, since half the equity is government money. For another, the broader goal of the plan is to fix the financial system, so insofar as the plan works and the financial system improves, helping the economy to recover, taxpayers gain. For yet another, individuals may well have a stake in these pension plans or long-term investors that will also be expected to play. If your pension plan is investing in this stuff, it doesn’t make a lot of sense to up your exposure by going in individually. And finally, it seems that Wall Street thinks the plan will be good for investments broadly, so any market exposure that individuals have may result in gains based on the plan’s success.

Now, of course, only direct participation in the plan lets an investor leverage up on the government’s dime. Is that what we want individuals to be doing just now?