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. john

    Is congress on vacation this month?

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

    The republkkklan party is responsible for for our economic woes for over 30 years i put the US economic woes squarely on their shoulders. the idea that tax cuts for the well to do is going to create jobs is a myth, 8 years of bush did not create one job, instead they got shipped overseas, in 2010 the repukes ran on jobs where are the jobs now. americans have to either be dumb,stupid,or really hate Obama to vote back in the same party that got us here at the edge of the cliff. Peolpe think for your selves. obama/ biden 2012 let us give all repukes their pink slips.

    August 8, 2011 at 2:12 pm | Report abuse |
    • Aaron

      The Democrats have had the reigns on Congress at least 35 of the last 40 years. The debt increased on Democrat watch and a Democrat president signed the new debt into law. Stop drinking the Kool-Aid.

      August 8, 2011 at 2:21 pm | Report abuse |
    • MHC

      Ignorant!!! Isn't it great when even a moron can post such blatantly uneducated facts in America.

      August 8, 2011 at 2:22 pm | Report abuse |
    • Keith

      You hit the nail on the head!!!

      August 8, 2011 at 2:23 pm | Report abuse |
  3. VistaPoint

    If S&P had no issues with the growing US debt for the last five years, and when the country was at the very edge of a financial meltdown, they have no right to be concerned now, especially when the everyone in the country is concerned about the debt and for the first time the Congress as done something (12% reduction in debt for now and promises to reduce further down the road) to address the problem. Hence S&P downgrade now absolutely does not make sense.

    August 8, 2011 at 2:13 pm | Report abuse |
  4. Ron Paul 2012!


    August 8, 2011 at 2:14 pm | Report abuse |
    • Kenny

      No need to try and blame Obama only for this mess. The Teaparty/Republicans are much to blame as well. It's because of this name calling and hinding from the truth that we are in this mess.

      August 8, 2011 at 2:25 pm | Report abuse |
    • dyarbrough

      To Ron Paul,

      Two things, first off learn to spell. And second how is this all Obama's fault. Look to Congress for the lack of communication and the in fighting. I'm not ignorant enough to say it was all one parties fault. Both have been and are definitely at fault here. Anyone with half a brain could notice this. I do however feel the Tea Party group under Republican party are clueless as to long term issues their ignorance is causing.

      August 8, 2011 at 2:29 pm | Report abuse |
  5. VistaPoint

    It is probably time to reclassify S&P as a reporting agency rather than a rating agency.

    August 8, 2011 at 2:14 pm | Report abuse |
  6. john

    If congress is on vacation this month, will you to go on vacation?

    When Rome burns will you watch it from home or work?

    Are Americans complacent lazy uninvolved apathetic?

    August 8, 2011 at 2:15 pm | Report abuse |
  7. Aces

    It was way overdue, our gov't has been spending out of control for decades, maybe now they will take the tea party seriously.

    August 8, 2011 at 2:16 pm | Report abuse |
    • KellyinBoston

      I suspect S&P is run by members of the Tea Party already. I mean, it takes some real mental midgets to make a $2 trillion math error, so it seems likely.

      August 8, 2011 at 2:25 pm | Report abuse |
  8. Jimbo

    Is this the same S&P that was asleep at the switch in late 2008? This looks like a CYA move to me.

    August 8, 2011 at 2:17 pm | Report abuse |
  9. DeYondre'

    I wants to know where my check! I went to the box this AM and nuttin! I voted 4 him because he said we would get money we need for our rents. Now I wants to know where my check!!! How am I suppoosed to to pay my fast-money loan on my car! He said we would get money if we voted for him. Now where my money??

    DeYondre' in Queens, NY

    August 8, 2011 at 2:18 pm | Report abuse |
  10. Albert Friday

    S&P reported the down grade for the US was accurate and correct in doing so. They are a financial intuition not a political machine as the administration would have us believe. The other two agencies will probably follow suite. They just look at the facts and give the rating. We have a second class administration for a first class people.

    August 8, 2011 at 2:21 pm | Report abuse |
  11. matk foster

    congratulations to the republicans/tea party.if all goes according to your plans you may be able to make this BLACK, man a one term president .with any luck maybe we will get another bush,pailen,or bauckman.then the next civil war will be between the haves and have nots.may god bless the usa

    August 8, 2011 at 2:22 pm | Report abuse |
    • Cole

      It's such a shame that these repugs/teaparty folks would do anything to get this president out of matter what it takes. Even bringing the country down is fine with them. God Bless America is right!!!

      August 8, 2011 at 2:29 pm | Report abuse |
  12. TheTraveler

    Don't even care. The whole world is heading for a meltdown of, shall I say it?; global proportions. It goes way, way, beyond the US credit rating. It goes right to the heart of humanity and what a selfish, greedy and morally bankrupt race we have become.

    August 8, 2011 at 2:23 pm | Report abuse |
  13. Ed

    The stock market dropping is just people over reacting. First Asia, then Europe and it was a safe bet that ours would follow in their footsteps. More of the same tomorrow I am sure should any of those other two go into the negative territory. If Asia and Europe were up today then so would we. Gotta love it.

    August 8, 2011 at 2:23 pm | Report abuse |
  14. woodrow

    There is no new information behind this downgrade. The government has lost revenue sources because of the recession and unemployment. All we can do is shrink the government accordingly. But congress cannot make a decision. It's this indecisive behavior that is the real problem here. New need to vote all the obstructionists out of congress. And we cannot afford tax breaks for corporations and the wealthy any more. We need to round up the loopholes.

    August 8, 2011 at 2:23 pm | Report abuse |
    • KellyinBoston

      The reason the government lost revenue sources is primarily because of the Bush tax cuts, which the republicans forced Obama to continue. If you didn't have those tax cuts, we wouldn't have this problem today.

      August 8, 2011 at 2:26 pm | Report abuse |
  15. josh

    S&P in my opinion is not wrong. What has brought us to this point is all and I mean all those imbassiles in Washington

    August 8, 2011 at 2:25 pm | Report abuse |
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