McDuffy's List: Top 10 Most Hated Men In the Financial Markets, 2008 Edition

It's that time again- GT McDuffy's Armchair Quarterback Top 10 List of the Most Hated Men in the Financial Markets for 2008.

1. Bernie Madoff- for allegedly pulling off the largest Ponzi scheme in history. This one's a no-brainer.

2. Whoever it was exactly who came up with the idea of FASB 157's mark-to-market provision. Once somebody actually figures out who it is--be sure to let me know--so I can throw my shoes at him.

3. Moody's (MCO) Chairman and CEO, Ray McDaniel--for "failing to warn investors sooner about the risks of the sub-prime related securities it rated." And, for welching on the "vig."

4. All short-sellers. Creepy little worms that they are.

5. Peter Schiff- for relentlessly yelling "Fire!" in a crowded market crisis. And building a career on it. Seemingly living to panic both Wall Streeters and Main Streeters. Particularly troubling to me is that Schiff's hypotheses have little to do with what actually crashed the markets--yet certain networks continue to book him. He's sort of the Ann Coulter of the financial media guest hogs. Good for ratings. Clever as a fox--but dumb as a box of nails.

6. Whoever it was exactly who refused to restore the "uptick" rule, knowing the entire time that short-sellers were pummeling stocks' bid prices into the pavement in endless bear raids on financials and other helpless sectors. Once somebody actually figures out who it is--be sure to let me know--so I can throw my shorts at him.

7. Henry Paulson and Ben Bernanke--for supporting and defending the infusion of tens of billions of dollars into the banks without simultaneously instituting any meaningful oversight on how the banks spent taxpayer money. And for, essentially, wiping out gords of common stockholders in the process.

8. Warren Buffett--for being so rich and "long-term" oriented, that he was able to withstand the market crash, even as his Berkshire Hathaway (BRK.A) stock plunged. Then come back into the markets and, of course, scoop up bargains at fire-sale prices, knowing the markets would eventually recover--and end up making even more money than he had before. And for not asking one of his longtime strategy and acquisitions advisors--attorney, Robert E. Denham,, how it was possible that Denham could, simultaneously, be a financial advisor to Buffett AND the Chairman of the Executive Committee of the FAF and Chair of the FAF's Strategic Planning Committee--which oversees the FASB on such things as mark-to-market accounting. In fact, on October 27, 2008--Denham sent a letter to the Honorable Barney Frank (Democrat), chairman of the House Financial Services Committee, imploring Congress not to overturn FASB 157, saying that "any legislative effort to overturn an FASB standard will greatly undermine investor confidence..." (as if FASB 157 had not already done enough damage).

9. Anyone remotely associated with Fox Business News (NWS).

10. Christian Milton, AIG's former VP for reinsurance (and his posse), which led to Maurice Greenberg being forced to resign- which led to AIG (AIG) metastasizing rapidly into a giant malignant tumor wrapped insidiously around the financial spine of the markets.

Rest-assured: 2009's list will be even more anticipated.

Comments

[shark1001:]

Number 9 should include CNBC, they are worse than Fox.

Feb 09 03:05 PM

[raising4dau...:]

You forgot numero uno....George W. Bush (in full disclosure, I was dumb enough to vote for him twice, but take solace in knowing that I didn't vote for him in the 2000 primary).

Bush grew the size of the federal gub'mint from $2T to $3.5T, or 75%, yet even conservative pundits gave him a pass since he's a Republicrat.

Bush's reckless deficit spending put a giant yoke around the necks of the private sector outside Wall Street, and his example underscored a theme of massive fiscal irresponsibility, greed, and speculation during his reign of terror.

I hate to agree with Jesse Jackson, but let's heed his advice from here forward and "stay out the Bushes."

Feb 09 03:31 PM

[User 327005:]

GT McDuffy comes across as a backwoods retard.

Feb 09 06:13 PM

[Tom Armistead:]

You missed the guy who orchestrated the effort that exempted CDS from regulation.

Feb 09 06:34 PM

[Idaho:]

Peter Schiff caused a panic?
I think it was laughter, not screams of terror that you heard.
The fire he was warning about caused the panic when the inferno finally became obvious to others.
Messengers of bad news are often hated, especially when the message is not believed at first.

Feb 09 07:51 PM

[User 143167:]

The current PE of S&P500 index is 20x with earning down 60% and this author blamed the short-sellers to bid the stock prices down.
I think the author is a firm believer of psychological economics (economic booms and busts are only due to psychological factors) and suggest people to bury their heads under the sand when there IS fire out there.
You are hurt by the problem(credit bubble in the past in this case), NOT by the people who called out that problem.

Feb 09 09:24 PM

[elmas:]

"Particularly troubling to me is that Schiff's hypotheses have little to do with what actually crashed the markets."

So, in your opinion, what actually caused the crash?

"yet certain networks continue to book him. He's sort of the Ann Coulter of the financial media guest hogs. Good for ratings."

Just like those blogs who use his name just to get hits.

Feb 10 08:02 AM

[notsosmart:]

waste of time.these guys cover for each other.you fail here you get a golden parachute & a better job.each failure moves you up the ladder if you dont pay your taxes you might even become the boss of the irs.the do-do isnt extinct.its alive & well in dc.

Feb 10 11:38 AM

[tph1239:]

Peter Schiff is not the bad guy. He knows about business cycle theory and spoke on this rare knowledge. I too have been educated in business cycle theory and I lost zero in this market crisis.

If one does their homework you will find a few colleges which teach business cycle theory. This is true macro econ theory.

Yet college hold classics written by classical economists,. Learn the classics then search colleges and universities libraries. The people at the FED say they are know business crisis theory yet are educated at universities which do not teach business cycle theory nor do their library have the classics in their library system.

If colleges and universities do not teach business cycle theory then the students from these institutions lack the knowledge it speak on the present situation. It just becomes their uneducated opinion.

A major news reporter spoke on the change in Michigan's sale tax a number of years ago.

At that time, Michigan sales was 4%. There was a push to increase the sales tax to 6%. This is a 50% tax increase.

The major reporter said "it is a two cent increase" don't confuse the issue by saying it is a 50% tax increase.

Hello!

Since this crisis started I watch the news to laugh.

These talk heads do not have a clue.

Learn classic economics and business cycle theory then talk about the current economic crisis.

Feb 11 12:39 AM