August 8th, 2011
01:41 PM ET

Your take: Where do you stand on S&P downgrade?

[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. Did S&P get it right? | A political miscalculation

As the market reacts to the downgrade status, 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 and 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& 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."

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Filed under: Business • Economy • Finance
soundoff (1,062 Responses)
  1. bartman

    Aren't the guys at S&P part of the group (Moodys and Fitch) of the same bozo's that "rated" the mortgage junk bonds that helped lead to the last meltdown? The group of rating agencies were incompetent then and they are incompetent now.

    The only good thing that came out of the downgrade is to let these knuckleheads in Washington know that the games must end. Our congressman seem to have time to take photos of their "junk" and email them to women, but can't seem to do their jobs. Speaking of Congressman and doing their jobs, have you ever spoken with one without then being solicted for a campaign contribution? Problem is, we have to many ambulance chasing attorneys that have ended up in politics.

    August 8, 2011 at 1:59 pm | Report abuse |
    • MC

      American folks are too generous and good hearted to forgive the folks who connive repeatedly to clean them up. I am talking about the axis of evil: Pres Obama (more republican than the Republicans and violated every promise hemade to get elected), the Congress (a bunch of low IQ hypocrats) and the Wall Street thugs (doing God's Work! a la Lloyd B, GS ). The only way to restart the great economy (greatest nation) is to first send some of these folks to prison for crimes commited against the American people, starting with the Wall Street bandits who literally destroyed the global financial system only to be rescued by their bought servants located on the two ends of the Penn Ave.

      August 8, 2011 at 2:06 pm | Report abuse |
  2. MC

    Congrtaultions and kudos to S&P. Finally, someone (John Chambers) collected enough guts to stand up to one-time Pres Obama, his Wall Street cronies like Tim Geithner, the Wall Street thugs like Lloyd Blanfein, investment manipulators like Warren B, the Tea Party and the GOP loonies.

    Business health depends on both top line (revenue) and bottom line (revenue net of expenses), the US Govt and Congress have shown utter disregard for increasing revenue and the expense cuts are shallow and untimely. Instead of giving handouts to the Wall Street thugs, Obama and his inept cronies should have helped the Main Street folks.

    August 8, 2011 at 1:59 pm | Report abuse |
    • Fundies

      Agreed. This is exactly what S&P and their cousin Moody didn't do for years in the markets for private debt, which helped lead us into the last tanking.

      August 8, 2011 at 2:06 pm | Report abuse |
    • Cesan

      EVERYTHING Obama does has to be approved by – guess who??????

      August 8, 2011 at 2:19 pm | Report abuse |
  3. Ed

    True, this started with Reagan. We outspent the Russians and look what happened to them. But at what cost to our future? I think I saw a thing on CNN the other day and when Reagan came in it was less than $2 trililon. Then Bush junior comes in and we have this war in Iraq which was not about wmd's to begin with. Not to say that 9/11 wouldn't have happened. But it should have been Afghanistan only and not Iraq. But currently I would throw the blame on the tea party, democrats, and republicans. For one you should raise taxes, and cut some programs that are unnecessary. But no, Republicans don't want to raise them and Democrats don't want to make cuts. So rob Peter to pay Paul is the way they want to do things. All I have to say is that my voice (as small as it may be) will be heard come election time. Now I think the AAA rating is more of a pyschological thing more than anything else. Sucks you have things like the S&P and others who can make one decision and it drags down economies world wide. They corporations, etc. have too much sway over things and that also needs to change.

    August 8, 2011 at 1:59 pm | Report abuse |
  4. BillDee

    Unlike many of the other sheep out there believing the drivel that the main stream media are feeding us, I do not believe a single word coming out of anyone in Washington. If you really want to know what's going on look no further than here:

    August 8, 2011 at 2:00 pm | Report abuse |
  5. Lady Alaska

    If our politicians cared more about our country and less about re-election, we wouldn't be in this mess. If a bunch of college kids can balance the budget, taking all the political special interests out & not touch Medicare, Social Security or Education, why can't the Congress. The President should be more aggressive in dealing with these idiots, both sides of the aisle – Republicans just get mean and hypocritical and Democrats just can't seem to get it together!!

    August 8, 2011 at 2:02 pm | Report abuse |
    • MC

      You gotta start cleaning up the house at the top. Prosecute Obama for violating all the promises and going to bed with Lloyd Blankfein and other WS bandits. Then send some of these WS criminals to prison for a long long time for crimes committed against Amercian people. Not one WS thug has gone to jail for all the subprime and trading fraud they perpetrated, Instead Pres Obama nd the Congress have rewarded their crime by saving them and then allowing them to pay themselves billions in bonus and Fed money at zero interest.

      August 8, 2011 at 2:12 pm | Report abuse |
  6. Arrowdog

    WONDERFULl news regarding the downgrade. EXCELLENT (absolutely no sarcasm intended). My wife and I have been out of work for over a year and a half. No "unemployment insurance" for us. No government benefits of any kind. Yet – we keep paying our bills and insurance premiums. Think of that... an American who after a year out of work hasn't lost it all.

    Let the other half feel what its like.

    August 8, 2011 at 2:02 pm | Report abuse |
  7. George

    This knucklehead for a president continues to refuse to absorb into his thick skull how a capalistic marketplace works!! Or worse yet, refuses to understand how it works. Obama's first and most pressing need is to convince a majority of American's that he actually wants America to succeed! We are months into this problem and he has yet to put forth in writing ANYTHING to solve the problem America faces. He talks, talks, talks, talks, and talks. Where's your plan, A$$ Hat?? He continues to talk about people needing an unemployment check and doesn't lay out a plan that will put at ease the job-creators in this country! Will someone, ANYONE, with access to this baffoon, give him a crash course in American economics? Please!!

    August 8, 2011 at 2:02 pm | Report abuse |
    • MC

      The generosity of great Amercian main street folks have always been punished by atrocious robbery and mockery including by so-called friend BenjaminNetanyhu. Time to wake up and demand loyalty to the main street Americans.

      August 8, 2011 at 2:38 pm | Report abuse |
  8. vincent

    wake up America. you act like a deadbeat and are surprised when you are downgraded

    August 8, 2011 at 2:03 pm | Report abuse |
  9. Fundies

    The run-up since the last tanking has been built upon nothing fundamental. House of cards has fallen.

    August 8, 2011 at 2:03 pm | Report abuse |
  10. George

    After the news conference, the ONE, walks off without taking a single question!! I guess when the teleprompter is equipped with a technology that can show bambi how to respond to the question, then perhaps he'll stick around and take questions. Ya think?

    August 8, 2011 at 2:05 pm | Report abuse |
  11. joseph

    The S & P rating is unfair in comparsion to the credit ratings given the U.K. and France. The report shows that America's current debt to GDP ratio is better than the UK and that projected outward our debt to GDP ratio will be better than that of France.

    When comparing the U.S. to sovereigns with 'AAA' long-term ratings thatwe view as relevant peers–Canada, France, Germany, and the U.K.–we also observe, based on our base case scenarios for each, that the trajectory of the
    U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the
    U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%.

    So how do we fall out of the AAA group? Oh yeah political instability. At least our people are fighting through their representatives in Congress as opposed to fighting in the street against the police in the U.K. BTW the riots in the U.K. are attributable to the new austerity programs. Will S & P downgrade the U.K. because of the riots?

    August 8, 2011 at 2:06 pm | Report abuse |
  12. john

    Will Americans march into Washington and arrest all congressional republicans and hold public trial on the steps of the Capital?

    August 8, 2011 at 2:09 pm | Report abuse |
  13. true justice

    Welcome to Obamaville. As Obama is on yet another taxpayer paid vacation one wonders if his
    golf game score will show a double recession just like his economy? What is amazing is how many of the kool aid drinkers still cannot understand that his ideology is the clear cause of our economic problems. He has successfully destroyed our AAA rating, no Bush to blame this time. Nobody could possibly be so stupid to vote for this social Democrat professor again.

    August 8, 2011 at 2:11 pm | Report abuse |
  14. George

    The financial markets continue to fall after Obama news conference. Cleary, his words carry no weight with people in the know. They recognize incompentence when they see it.

    August 8, 2011 at 2:11 pm | Report abuse |
  15. john

    Will America see London-style protests or are Americans apathetic lazy uninvolved?

    Will Rome burn without a peep from the Americans?

    August 8, 2011 at 2:11 pm | Report abuse |
    • Jim

      Rome is already burning and Nero is already fiddleing.

      August 8, 2011 at 2:20 pm | Report abuse |
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