[Updated at 1:41 p.m.] The inability of Congress and President Barack Obama to reach a deal to raise the debt ceiling sparked a firestorm of anger directed toward Washington. Readers said they were angry, disappointed and fed up. They had no problem about where to point the finger when it came to blame. Quite frankly there was downright outrage.
And now Standard & Poor's has downgraded the U.S. credit rating by one notch to AA+, removing it from the Triple A-club for the first time in history.
CNNMoney.com: Did S&P get it right? | Time.com: A political miscalculation
As the market reacts to the downgrade status, CNN.com wants to know how people feel about it. Grab a video camera and sound off on iReport here.
Some iReport contributors are already speaking out about the downgrade, whom it affects and how much the American public understands and cares about the issue.
Egberto Willies, a frequent iReport political commentator, says he believes that the S&P downgrade of the U.S. is “a fraud on the American middle class.”
“The reality is, Standard & Poor's and all these organizations are the same companies who rated credit default swaps that brought down the economy and forced us to get into further debt to bail out the financial sector,” he argues in his video. “They're the ones who allowed that to occur.”
Omekongo Dibinga says he thinks Americans simply don’t care what the country’s credit rating is.
“Most Americans are too busy worrying about their own credit to care about America's credit rating,” he says in his video. “With our AAA rating, we've still had a Great Depression and a Great Recession. People have still lost their homes and thousands of jobs. Is this what our rating got us?”
Dibinga says the lowered rating may even serve as a needed wake-up call for politicians and corporations.
"Maybe this credit will be good for America," Dibinga said. "Maybe these corporate types at the top will start to think twice, but for the rest of us, we're going to wake up tomorrow and our life won't seem to have changed because of a downgrade.”
Melissa Fazli from Yorba Linda, California, sent a video reaction shortly after the S&P downgraded the U.S. credit rating. She says that everyone should pay as he goes: “No more debt.”
She says she also believes the downgrade is “a kick in the face” but hopes that people will vote for politicians who will “wake up” and “get their act together and work together.”
And those commenting on CNN.com and CNNMoney.com haven't shied away from sharing their views either. Here's a sampling of what you had to say:
"S&P was absolutely right to downgrade the US government–the country is frighteningly deep in debt. For decades, the federal government has proved itself utterly incompetent in managing the taxpayers' money and this is the result. And if government can't manage our money responsibly, it's time to cut up the credit cards–we need a balanced-budget amendment." - CNN commenter HenryMiller
" The S&P is full of it. This is the same agency that assured investors and gave excellent ratings to toxic mortgage back derivatives. They are
responsible with the banks for the finical [sic] crisis and now they are playing more games and leading us into a double dip. Make no bones, they have their own agenda. I would not be surprised if they are short-selling and making out like bandits. These people are all crooks!!!" - CNN commenter Daniel Tal
"good for S&P....you clowns in Washington want to act like fools? You get called on it!!!!!" - CNN commenter stooges999
"And they are "sticking by their decision"? Wonder if the S&P is also "sticking by their decision" on the sub-prime mortgages the touted as
AAA before the collapse in 2008???" - CNN commenter esmith3750
"Anyone who listens to S and P after the crimes they committed during the financial meltdown is an idiot" - CNN commenter Jon King
In response to that comment user Barfly52 wrote: "Looks like investors are listening. Market down 325 points in first 75 minutes."
Plaudits to Ali Velshi for his calm and clarification in regards to the juvenile panic that is gripping our nation. As he noted earlier today, Canada which has been a viable financial nation for years has lived quite successfully on a AA rating. So what? S&P downgraded us. Let's stop the inane finger pointing and playing the blame game, and pick up the pieces and move on with positive and I might add non-partisan efforts to do what is necessary for America. Ali is the only one I have heard so far that is calling it like it is, and that it is NOT time for panic and diahrea of the mouth.
The Tea Party is poison....
Give me a break.... The tea party is not the blame here but rather Reid's inability to lead. All he knows what to do is say no and never give any ideas... He was quick to say no to the Republicans but he never once brought his bill up for a vote.....
The dems had a supermajority and still couldn't pass a budget. The President had a deal in place a several days before but then backed away from it because of Palosi and Reid. If Clinton were in office we would have never gotten that far. He would of had a bill passes several weeks prior to the deadline.... Difference is one President makes decisions and the other makes speaches......
Eh, I don't care about the downgrade. There's plenty of countries with worse credit ratings, and they still function and exist. What matters is Congress, who somehow now find overspending and deficit limits matter, should do more to fix these problems.
It seems like the rating change is medicine that the patient needs to take. I hope it causes the government and the people to take more action.
Dumb money is selling Smart money is buying cheap. I wonder who at the s&p is getting paid to create a blue light special stock sale.
This is the same rating agency that rated bonds that i bought in my 401 k from American General and CIT Corp. AA+. Two weeks after I bought them the rating went down to BBB-. And then a month later CIT Corp. declared chapter 11. I really put a lot of stock in what S&P has to say. Funny thing, many repubs were killing S&P when they were rating the CDO's and highly toxic mortgage debt, said S&P is useless. But now they are using S&P lowered rating of US debt as a tool to kill Obama. Repub hypocrisy again
Almost to the word what I was going to write. My AIG was the best of the best 2 days before it was the worst of the worst, according to the ratings agencies. They lost all respect from me after that-and should have from everyone else involved also.
If you're a broker, it's champagne tonight! They make their money on the sale of stocks, not on the market's performance.
I find it ironic that Standard & Poors one of the principal players in the debt meltdown when they continued to give the ridiculous CDOs a triple AAA rating when there was no backing other than mortgages given to people with no jobs or hopes of paying. S&P along with its 2 other 'registered' brethren continued to do this to keep the investment banks happy and thus had a major hand in the meltdown. Now, S&P is playing God Almighty and fingering the US Government as well as Freddie and Fannie as not as good a credit risk as previously yet the government can still pay as determined by the lifting of the debt ceiling. Heck S&P even made a huge math error and then came back and said it didn't matter. It is a shame that investors pay attention to this type of ratings agency when they are obviously very flawed in their determinations.
The situation that we are currently in cannot be traced back to a single President or administration, whether it be Obama, Bush or others. The debt ceilings were established partially to trigger debate as to how the government was spending money, however, for years the practice has been to routinely "rubber-stamp" the increase in the debt ceiling. It is ludicrous to think that we can perpetually continue to increase spending, whether it be on defense, or social programs and cut taxes and expect that there will be no negative impact on our economy.
It is time for everyone in Washington to wake up and smell the coffee. You can't spend what you don't have. Get your act together and jointly figure out how to balance the budget. The situation has been created throughout the terms of democrats and republicans alike...now it is time to work together to fix it.
For all of you blaming this president for the down grade, here is something that is not going to come easy to you. S&P cites two major reasons why they chose to downgrade:
A.) They put the blame on Congress and the White House for not working together in such a manner as to put trust going forward. and...
B.) (This is the real kicker) S&P stated that there was no revenue increase to substantiate the spending cuts. To them ,this is unsustainable. And for you President finger pointers, this part IS the responsibility of the Republicans and their minions, the tea party. This is going to play out in the next election cycle, particularly with almost every poll siding with the president on budget compromises that included revenue increases by way of higher taxes.
Can you chant "four more years" ?
What to wipe with after a huge financial dump? TP, of course. TP, as in "Tea Party"!
S&P's ratings are for sale. Pay them the right fee, get your AAA rating.
The sky is falling
S & P...BIG TALK...DO LITTLE...
Getting their 15 minutes of fame to the demise of the country.
You do not scare me S&P!!
I'll buy more stocks today!!
S&P is corrected on being concerned about the disfunctional congress. Its like solving a household an annual budget problem. The republicians are saying the solution is for the family to stop eating for a year. The Democrats are telling the bread winner to work 24 – 7's. Everyone knows the solution is somewhere between the two positions.
Friday evening the head of S&P not only mentioned Obama but specifically called out the republican partty for their refusal to make any comprise in the debt ceiling talks. . If the republican party is to survive- they will need to work constructively with the administration and do it in a grown up way- remember mccanin country first!
S & P just highlighted a problem we all know and the majority know how to solve. Yes, we need to trim spending but we also need revenues. The last time the US population was taxed at this low a rate was 1929. Ring any bells?
There are 2 ways to raise revenue. Taxes and employment. We can, and should, tax at the rates prior to the Bush cuts.
Second, if we put just half of the unemployed back to work, that would ease, considerably, the gap between revenue and costs.
It ain't Rocket Science. I've done that and this isn't it.
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