You're the first person I've heard to say that most libertarians don't respect CATO. Who do they respect then? I'm not trying to be confrontational, just asking...
Ron Paul, Austrian economists, lew rockwell.
It may have been rash to say that people don't respect CATO. However, recently, previous disagreements are now seriously hurting opinions because of the bailout. The main beef with CATO is their connection to neocons and objectivism. Their support for the bailout as a temporary solution matter hasn't helped.