its funny what trust fund means to the gov and what it means to the average person.
The trust fund is real -- it's just invested in the equivalent of long-term US treasury bonds. Until Obama screwed the pooch, US Treasury bonds were considered the safest investment in the world.
But, think about what would have happened if the SSA had invested it elsewhere. Congress would have never let them do it on their own: there would have been all kinds of earmarks and prohibitions. It would have been crony capitalism at its worst.