"If you are going to be with an active manager ... be prepared to lose one year out of three. I think most investors can't handle that; they are their own worst enemies."

Vanguard founder Jack Bogle shared those thoughts in his latest media interview, this time with MarketWatch's Chuck Jaffe. As per usual, Bogle used the current downturn as further evidence of the troubles of active management.

"Letting one fund manager decide for all investors how much to have in stocks or cash doesn't really seem to work for most investors," Bogle told Jaffe. "There are not many managers who can do it, for starters."

As far as the mutual fund industry as a whole goes, Bogle says it "did a bad job."

"Embarrassment is right," Bogle added. "Annoyance, even anger, that the industry turned out not to be this wonderful stewardship business, but a great big salesmanship business of new products."

Bogle also took a swipe at Bob Reynolds and Putnam, lumping absolute return funds in with "all kinds of things that just can not work." 

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