2008 Hall of Shame

The Great Bailout Bonanza

Apparently Uncle Sam didn't get the memo explaining that money does NOT grow on trees!Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and Congress have approved bailout after bailout after bailout, all funded by you, the American taxpayer. Why are we footing the bill for the lousy business practices? These so-called "pros" knew the risks that they were taking. When the money was pouring in, they were happy to pocket obscene profits while continuing to push questionable exotic investments and mortgages.
Next Up: Inductee No. 2

The Three Stooges

Detroit's Big 3 automakers go to Washington (in their private jets, thank you very much!) and ask for $35 billion in aid to help them stay afloat. A bailout will only temporarily delay the inevitable. Within a year, the Three Stooges (Robert Nardelli of Chrysler, Alan Mulally of Ford and Rick Wagoner of GM) will be back in front of Congress, rattling their same tin cups asking for more of your money to bail them out once again. The bottom line is, all three automakers lose money on every car that they make. For crying out loud, even a fledgling entrepreneur knows that business model won't work!
Next Up: Inductee No. 3

Golden Parachutes for Failed CEOs

How would you like to get paid a few million dollars to fail miserably at your job? That apparently is how it works when you become the CEO of a major company that hits the skids. Your stock is down 50%, your board of directors is chugging Maalox, your earnings outlook is grim and your employees (the ones you haven't already laid off) are nervous about their future. So, the board tells you to "hit the road, Jack." Oh, but, before you go, don't forget to take your multi-million dollar golden parachute, please. Who cares about all those shareholders who lost money anyway?
Next Up: Inductee No. 4

Madoff Madness

We've seen a LOT in all our years in the money business, but this one really takes the cake. Bernie Madoff was a world-renowned investor. He was deemed so successful, that people literally begged him to invest their money for them. His clients included big names like Steven Spielberg and New Jersey Senator Frank Lautenberg, big charities, and big institutions like Yeshiva University and the Royal Bank of Scotland. His victims are now $50 billion poorer thanks to Madoff's massive scam and the Securities and Exchange Commission's gross incompetence.
Next Up: Inductee No. 5

SEC: Watchdog or Lapdog?

It appears that the Securities and Exchange Commission was asleep at the wheel when we needed it most. It was supposed to regulate Wall Street ... to protect investors ... to investigate allegations of fraud. Instead, it turned a blind eye to nine years' worth of warnings and allegations about Bernie Madoff, pushed through rules that allowed big investment firms to take on massive debt and failed to notice when those Wall Street titans were at risk of failing.
Next Up: Inductee No. 6

Useless, Do-Nothing Politicians

We send them off to Washington and what do we get in return? A big fat nothing, that's what. This country faced crisis after crisis in 2008, and many of our elected representatives just talked, talked and talked some more. While they were spewing hot air, our economy spiraled into recession, the housing market crashed and burned, the national debt skyrocketed, unemployment surged and we watched corporate titans collapse and disappear in the blink of an eye.
Next Up: Inductee No. 7

Useless Housing Rescue Bill

By mid-July, skyrocketing foreclosures mounting, a tanking real estate market and a widening credit crunch were all clearly causing big trouble for American homeowners and the economy. You would have thought that the government would come up with a plan that provided REAL relief. Nope. Instead we got a Housing Rescue bill that did virtually nothing to help homeowners facing foreclosure, and even less to stimulate the housing market. Foreclosures are up 28% over last year, American homes have lost $2 trillion in value (gulp) and millions of people are still at risk of losing their homes. Some rescue.
Next Up: Inductee No. 8

Fly the Fee-Happy Skies

2008 was the year the airline industry decided to give up even pretending that they cared about their customers. Most airlines now charge $15 to check even ONE bag on a flight. On top of that, you can now expect to pay for most anything once considered a "basic," including a blanket, getting an assigned seat in advance and even for non-alcoholic beverages! The airlines blamed high fuel prices. But the fact is, they've been itching to charge you for all of this stuff for years. Do you see any of these fees being cut now that fuel prices have come down? Don't hold your breath!
Next Up: Inductee No. 9

Banks Fail, You Pay

25 banks have failed this year. That's more banks than have failed in the last five years combined. Banks made lots of stupid decisions over the past five years that got them into this mess. And just like Wall Street, they want YOU to save their bacon. But they aren't looking for a bailout ... oh, no. Instead, they are raising cash on their own by going on a fee frenzy. Many banks have been slapping on new fees and hiking existing fees through the roof ($10 fee for a cashier's check ... $45 for a bounced check?!).
Next Up: Inductee No. 10

Record Gas Prices = Record Profits

All summer long we watched the price of gasoline climb. When the cost of a barrel of oil crossed the $150 mark in July, everyone started cutting back on their consumption. We drove slower, carpooled and sold the gas guzzler. While we were cutting back, oil companies were raking in record-smashing profits. That's just insulting. Thankfully, the prices have plunged-for now. Despite this painful reminder, we haven't taken a single significant step (such as significantly investing in alternative energy or new domestic oil production) to prevent future spikes in oil prices.
Next Up: Inductee No. 11

Irresponsible Mortgage Lenders

The writing on the wall was as plain as the nose on your face. Anyone willing to open their eyes could see that mortgage lenders were taking huge risks. At the height of the housing frenzy, lenders were approving risky loans for millions of people who would never be able to get a traditional loan. No income? No problem. No job? No problem. Can't afford to pay any more than the interest each month? No problem. No money for a down payment? No problem. Heck, lenders stopped bothering to even require you to fill out basic paperwork or proof of assets/income before you were approved.
Next Up: Inductee No. 12

More From the Dolans

Let personal finance experts Ken and Daria Dolan of Dolans.com help you and your family save money and get the most bang out of every buck you spend. Start now by learning a dozen easy ways to save money on life's necessities.

Next: More From AOL

The Credit Noose

Without a doubt, loose credit helped create this mess we're in. Too many people and businesses had too much easy access to too much money. Now that late payments and defaults are soaring, credit card companies have seriously slammed on the credit brakes. Even folks with a good credit history are finding credit hard to come by these days. First, they gave consumers so much rope that many hung themselves. Now, they have tightened credit so much that it's like a noose around the neck of struggling consumers and the small businesses that are the backbone of our economy!
Next Up: Inductee No. 13

Over-Consumed Consumer

Sorry, folks, but we consumers don't get to escape some of the blame. We consumers gorged ourselves over the last five years on a feast of easy credit and low interest rates. We saved too little and spent way too much. We bought homes we couldn't really afford. And now we are paying dearly for it. The good news is that those days are over. Credit is hard to come by. People are tightening their belts. In fact, the amount of household debt dropped for the first time ever. Being thrifty is back in style, and that will be very good for all of our financial futures.
Next Up: Pick Your Favorite

Who Do You Think Is the Worst?

Cast your vote in our poll (to the right).

So there you have it ... a baker's dozen of obnoxious and incompetent money moves from 2008. It was hard to whittle the list to just 13! But, as we look to a fresh start in 2009, we hope that we all-politicians, CEOs and consumers-learn from our mistakes and make the changes we need to get our finances and our economy back on track.

Who do you think was worst of the worst in 2008? Cast your vote in our poll (to the right). ---------------------------------------------->

Next Up: More From the Dolans

More on AOL:
Layoff Kings of 2008

The business headlines have been filled with reports of layoffs nearly every day in the last half of the year. A lot of these have been towards big, profitable companies, which says something about what they expect in 2009.

24/7 Wall St. profiles the 20 companies with the most layoffs this year, including how many layoffs, where they are occurring and why they are occurring.

Next Gallery:
King of Layoffs