Or consider the high-net-worth couple that lost $3 million when they sold the bonds they owned in a panic. They purchased them from Freddie Mac and Fannie Mae because they assumed that such "government" bonds were safe.
Finally, and most importantly, noting that bank depositors are better off than stock investors because stocks fell this year is a shortsighted and inaccurate comparison. Sure, for the most recent 12-month period, you're right. But try that comparison over any 20-year period of your choosing and you'll see vastly different results. Over long periods, bank depositors will find that their money will have been severely eroded by taxes and inflation, while the investor willing to tolerate occasional volatility will have enjoyed true growth of principal.