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.

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."

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

    S&P and the other two rating agencies lined their pockets with fees from banks that bought ratings on sub prime mortgage backed securities. The US should file suit against the rating agencies for fee based made as instructed sub prime mortgage backed security ratings. If the US prevailed, we could recoup the bailouts that resulted and reduce our debt to regain our AAA rating.

    It is a known fact that if a mortgage backed security issuer wanted less subordination or larger higher rated pieces of a mortgage backed security, all you had to do as a large issuer such as Countrywide, Citibank, IndyMac, Lehman, Bear Stearns was threaten to not have that rating agency rate the transaction unless you got what you wanted. Getting what they wanted put money in the issuers and the rating agency pocket. The investor and the US government paid for the you scratch my back I'll scratch yours ratings.

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

    If we won't raise taxes....and we won't cut spending, perhaps the government needs to raise money the way it did from the very beginning.... Raise Tarrifs on imports.

    August 8, 2011 at 2:26 pm | Report abuse |
    • H

      China thinks it has the right to judge the U.S. economic situation. The same country that still uses communism to oppress it's people. China is only a super power of any type because the U.S. laxed it's tariffs on Chinese imports and allowed U.S. companies to outsource jobs to third world countries such as China. So, STFU China!!
      From a blue collar workerthat still fears for his job because our politicians are still providing for the rest of the world instead of the U.S. and its workers!

      August 8, 2011 at 2:43 pm | Report abuse |
  3. jgb24

    Do we have fiscal issues in the U.S. that we must face? OF course, but the S&P downgrade is unbelievably ironic. It is ironic that the down grade comes from a company who played a major role in the 2008 crisis by supporting and giving good ratings to companies so heavily invested in mortgage backed stocks which have become toxic to our economy. How can they expect an ounce of credibility with such a history of dubious dealings.

    August 8, 2011 at 2:27 pm | Report abuse |
  4. Richard, Fithburg, MA

    Hi
    I think that the olny stock that should be selling off is standard & poors. What the stock drop enought they will be gone.
    They got the housing wrong and know they got this wrong. they should be upgrading other country instead of tring tomake thing worst. Sell there stock, Sell there stock, Sell there stock, Sell there stock,

    Richard

    August 8, 2011 at 2:27 pm | Report abuse |
  5. josh

    In my opinion S&P is not wrong. Its all repeat all those imbessiles in Washington that have brought America to this point.

    August 8, 2011 at 2:27 pm | Report abuse |
  6. Magic

    John....Can't you tell that Congress is off??

    Sorry 'bout that.....

    OK, here is something I wish was available but it will never happen. We should change all of the ballots in the next election – add a box to be checked which says..."GET RID OF ALL OF THESE IGNORANT BA...." – well you get the drift. And to think that it seems like everyone in Washington is pointing the blame at someone else!!!! "we didn't do it, they did!" Get a grip, Congress. You've already made a name for yourselves, now get the HECK OUT!!!!!!!!!!!!!!

    August 8, 2011 at 2:30 pm | Report abuse |
    • Dean

      Requirement – 15 years of business experience required. Imagine you were interviewing applicants for Congress. Take the time to look at the employment background of those currently serving. What do you see. A law degree, worked for family (Cantor), IRS 4 yrs, (Bachmann) etc. etc. I would not hire them in my business because they have not business experience other than a law degree. Do not equate book smarts with main street smarts! We are as much at fault regarding the current economic situation as we put these idiots in Congress.

      August 8, 2011 at 2:43 pm | Report abuse |
  7. Dean

    I am tired of the media and the credit agencies who are taking over the entire world with self serving motives rather than the lets get things solved approach. It is obvious that the political parties do not have the countries best interest at heart. Lets at least limit the term of congressman as a first step. If that does not work, lets just eliminate the parties so those elected will be focused on the good of the country instead of their own self serving interest. Do you know that half of those in congress are attorneys who have very little if any business experience. No wonder why we are in such a mess! From one who has extensive business litigation experience, the attorney is focused on who has the best argument rather than providing a solution. The Casey Anthony case is a perfect example of this. We need problem solvers in Congress not litigation minded idiots.

    August 8, 2011 at 2:31 pm | Report abuse |
  8. ted maietta

    the middle class such as myself has no faith in s p scores anyway, its a messed up organization from the bottonm to the top, that only wants gov hand outs to pay thier exects

    August 8, 2011 at 2:31 pm | Report abuse |
  9. D Michaels

    There are so many broken pieces to the economic puzzle it is hard to know where to start but organizations like S&P, Moodys and Fitch who were at the heart of the meltdown to begin with should not have the relevance that they apparently do. "Hey, I need a AAA rating on my bond issue. How much will it cost?"....... I am glad to see more than a few people saying the same thing. But the current situation is obviously more than just credit ratings, debt ceiling, etc.

    From the 'stock markets' lows of a few years ago, there was absolutely no justification for the markets to reach the levels they did in such short amount of time. It was all driven by Wall Street/Media hype..... and 'hype' is unsustainable just as greed and avarice are unsustainable. It is time for people to stop acting like sheep being led to the slaughter and begin thinking for themselves, taking the time to make wise decisions about their financial future instead of leaving it in the hands of the 'experts'. It really isn't rocket science if you just put a little time and effort into it.

    August 8, 2011 at 2:31 pm | Report abuse |
  10. Jim

    This crises wasn't of the Teaparty's making. It was caused by several decades of over spending and punting the problem to the next congress. That being said, I think the Teaparty is correct that the solution begins with reducing spending. Raise taxes as a very last resort. Using the GI bill and working I paid my own way through college (I don't think of the GI Bill as a hand out from the government, I earned it by being shot at for part of my life). I have worked hard my entire life and never been in trouble with the law. Now that I'm starting to earn a good living and my wife and I can enjoy the fruits of my work the Democrats main answer to the problem they helped to create is to punish me by confiscating more of my income.

    August 8, 2011 at 2:32 pm | Report abuse |
    • jean2009

      It was caused by the Reagan and G. W. Bush tax cuts for the wealthiest people, and borrowing to pay for things like unfunded wars.

      August 8, 2011 at 2:36 pm | Report abuse |
  11. bowdie

    both parties are responsible. we have let corporate world take over our country and the world for that matter. forced working joes and janes to hold the 401 K stock market bag while the rich insiders/top execs skim off the top and shoot fish in the barrel...the poor dont care they live off the system anyways...they are just laughing at the poor b#stards who tried to improve their lot by saving and being "market savvy"...we did get fooled again

    August 8, 2011 at 2:33 pm | Report abuse |
  12. jean2009

    Just raise tax back to the Clinton era level and slap on some tariffs....for crying out loud.

    August 8, 2011 at 2:33 pm | Report abuse |
  13. redshirt

    Suppose I take a loan from you for $90,000 and when it is due, I owe you $100,000. Now, let's suppose I pay you with $100,000 in Monopoly money. Is that a default? Obviously it is! It is a 100% default.

    Now suppose I pay you back $90,000 in regular US dollars, and $10,000 in Monopoly money. Is that a default? Yes, of course it is! That is a 10% default.

    So when the Federal government relies on the FED Reserve Bank to monetize debt, which leads to the weakening of the dollar, it is akin to promising some Monopoly money to the debtee. It is a partial default. The US has been defaulting on its debts for quite some time now. When big business pundits claim that the US credit should be awesome, one may want to simply look at what they stand to lose!

    Step back and be real. If you were the debtee, how would you expect to be paid? In dollars worth the same as when you offered the money, or with dollars worth less? So honestly, this downgrade is about 10 years late.

    August 8, 2011 at 2:33 pm | Report abuse |
  14. ARND

    We were downgraded because of (i) a broken political system; and (ii) no real plan to reduce our debt. IT IS UP TO US TO MAKE A DIFFERENCE. The Association to Reduce the National Debt (featured on FOX and CNN) is working to bring Americans together to help fix the debt crisis. WE NEED EVERYONE'S HELP. Please join and support our efforts. Find them online, "like" them, spread the word, and donate. TOGETHER WE CAN SAVE OUR NATION. Please act now...your country needs you. Thank you.

    August 8, 2011 at 2:34 pm | Report abuse |
  15. Ned

    Thanks Tea Party.

    August 8, 2011 at 2:34 pm | Report abuse |
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