I wonder if Fannie and Freddie were once considered 'prudent'. Probably so, I'd guess, and that's part of the disaster. There are so many funds, trusts and the like that have just been pummeled.
Turns out - at least as of today - that they all would have done better in gold. Although currently trending down, gold has moved from $1420 to $1593 so far this year. I remember some months back one of the Texas Universities bought a large amount of gold. Maybe they'll come out all right, but it seems like they bought at the wrong time, if I remember correctly.
All depends upon when you got the idea, sometimes.:)