Pension funds

Here's an example (via Mish Shedlock) of the dangers we would be exposing ourselves to if we allowed our pension funds to be invested in -- ahem -- "non-moribund investment patterns":

As of March 31, Calpers's $17.6 billion real-estate portfolio, a majority of which is invested in commercial properties while about 5% is invested in residential, reported a one-year decline of about 35% in its value.

I'd take a measly inflation-adjusted single digit return any day, thank you very much.