With most of the funds tied up in long-term assets, that could leave the banks short of cash if investors stop buying new products.

WSJ: China Tightens Regulations on Wealth Management

In a news release from the Conference of Mayors, Manny Diaz, mayor of Miami, Florida, and president of the conference, warned against funds getting tied up in state governments.

CNN: Mayors want funds to fix their cities

But we could deliver so much more with funds that are currently tied up in government red tape.

BBC: School funding for councils announced

Still, as someone with a 401(k) tied up in big mutual funds, all I can say is: God help us all!

FORBES: The World's Greatest Investors - God Help Us!