catch needs to return an observable.
.catch(e => { console.log(e); return Observable.of(e); })
if you'd like to stop the pipeline after a caught error, then do this:
.catch(e => { console.log(e); return Observable.of(null); }).filter(e => !!e)
this catch transforms the error into a null val and then filter doesn't let falsey values through. This will however, stop the pipeline for ANY falsey value, so if you think those might come through and you want them to, you'll need to be more explicit / creative.
edit:
better way of stopping the pipeline is to do
.catch(e => Observable.empty())