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. Joe Nolan

    The Tea Baggers scalped the Middle Class, Seniors and the Economy but did not touch a hair on the head of the wealthy corporate cronies that own them.

    August 8, 2011 at 2:49 pm | Report abuse |
    • charles atlas

      TRUER WORDS WERE NEVER SPOKEN!!!!

      August 8, 2011 at 2:53 pm | Report abuse |
    • bob

      S&P credit rating agency should be boycotted as un-American. Where were they when they lined their pockets rating garbage mortgage backed securities as AAA in 2008. Why should we listen to them now as they create an unnecessary climate of fear? The Us government should sue! All Us companies should seek an alternative rater for their newly released securities!

      August 8, 2011 at 2:58 pm | Report abuse |
    • cj

      Time for the President and his administration to stop blaming others for their failings. Obama loves to take credit when anything have a possitive outcome and blames others when they don't. Obama will only appear on television to speak to Americans when the Navy SEALs have a successful mission...

      August 8, 2011 at 3:05 pm | Report abuse |
    • MD

      You have to blame organized right wing machine for manipulating the sheep in this country to vote for the tea baggers... Talk about buyers remorse.... I can't imagine anyone feeling at this point that the tea bagger ideologically positions are "Good For America"

      Funny... Michele Bachmen was first to shout that she would vote NO on raising the debt ceiling and she'll be the first to blame Obama for getting the S&P downgraded... And the sheep will continue to follow taking us all to the slaughter house with them!!!

      August 8, 2011 at 3:05 pm | Report abuse |
  2. DRS

    We can se it is a well orquestrated political maneuve to get down Obama... We know, and we are watching...

    August 8, 2011 at 2:50 pm | Report abuse |
    • MD

      I don't think so... This was about ideology.... Tea Bagger ideology actually got in the way of good governance and has damaged the country's reputation.. But just wait.... It can go much further then that... We have the Governor of Texas holding prayer sessions in a stadium asking God to help us.....

      Ideology drives every destructive historic course whether it be Islamic or Christian fundamentalist with an intolerant ideology... You want to talk about one of the worst intolerant ideologies. !! Nazi Germany !!

      August 8, 2011 at 3:16 pm | Report abuse |
  3. chris

    This is a failed country, the fact that we allowed ourselves to be in this positions and this credit rating illustrates this perfectly. This is not a place I want my son to grow up, bad educational systems, worthless politicians who are more worried about a forgetten worn out war than helping their people at home. But where else on this planet is better? Who's better off? Who is setting the example of accountability, respobnsibility, integrity? No one, no one is better off, and no place is better. So we're a failed planet I guess it comes down to.

    August 8, 2011 at 2:50 pm | Report abuse |
    • len

      wow, aren't you having a bad Monday.

      August 8, 2011 at 2:55 pm | Report abuse |
    • Lynn

      Sounds like somebody needs a nap.

      August 8, 2011 at 2:59 pm | Report abuse |
    • MD

      Someone forgot to take his happy pills today !!

      August 8, 2011 at 3:08 pm | Report abuse |
  4. babouche

    No one should be surprised by the down-grade. All of the credit agencies have been warning about this being a possibility. To blame them for the what we all know is a horrible economy is ridiculous. The people that deserve the blame are the politicians, on both sides, that have created this mess. Both parties are responsible and the President, as the leader of the nation, has not provided any leadership. He completely dismissed the bi-partisan commission's recommendations that would have met the basic requirements established by S&P to avoid the down-grade. Political rhetoric on both sides is getting in the way of fixing the problem. We have no one to blame but the people that are shaping policy.

    August 8, 2011 at 2:51 pm | Report abuse |
    • bob

      What do the credit rating agencies know except how to make money for themselves. S&P credit rating agency should be boycotted as UnAmerican. Where were they when they lined their pockets rating garbage mortgage backed securities as AAA in 2008. Why should we listen to them now as they create an unnecessary climate of fear? The US government should sue! All US companies should seek an alternative rater for their newly released securities! There is no doubt that the US would have paid their bond holders first even if we wouldn't have raised the debt ceiling.I wouldn't be surprised if the S&P is being paid off to downgrade-; they only do things to make money. How is that Moody's and Fitch see things differently. ALL TRUE AMERICAN COMPANIES SHOULD BOYCOTT ANY BUSINESS WITH THE S&P RATING AGENCY.!!!!!

      August 8, 2011 at 3:07 pm | Report abuse |
    • chris

      The solution is easy, but politicans are incompetent.

      August 8, 2011 at 3:09 pm | Report abuse |
  5. SeattleMM

    The debt crisis (not the debt, which we can manage, of D's & R's work together) was manufactured in Washington DC, for strictly political purposes. The Tea Party should be voted out of office as quickly as possible. They are trying to remake this country in their own image. If a person doesn't accept that this country is full of people who look, think, believe, and live differerntly – and that it is still equally our country – then they shouldn't be allowed to govern it.

    August 8, 2011 at 2:52 pm | Report abuse |
  6. Tea-Tards Suck

    THE TEA PARTY DOWNGRADE: “The statutory debt ceiling and the threat of default have become political bargaining chips

    in the debate over fiscal policy,” S&P wrote in a press release announcing the downgrade. Referring specifically to the GOP’s rejection of a balanced spending package that included both revenue increases and spending cuts, the agency said, “It appears that for now, new revenues have dropped down

    on the menu of policy options” and stressed that the final deal only reinforced its belief that the Bush tax cuts would not expire at the end of 2012, “because the majority of Republicans in Congress continue to resist any measure that would raise revenues.” Indeed, as Edmund Andrews concludes in the National Journal, “it’s hard to read the S&P analysis as anything other than a blast at Republicans

    .” The agency “was saying that the GOP strategy had shaken its confidence” and “must have been unnerved by the number of Republicans who insisted that it would be fine to blow through the debt ceiling and provoke a default.” During the crisis, Sen. Roy Blunt (R-MO) and other Republicans maintained that it would be worse to raise the limit

    without significant spending cuts than to not raise the limit at all and even claimed — falsely — that S&P agreed. As Sen. John Kerry (D-MA) noted yesterday on Meet The Press, the S&P’s downgrade of U.S. debt could be aptly described as a “Tea Party downgrade

    .”

    August 8, 2011 at 2:52 pm | Report abuse |
  7. H

    ?

    August 8, 2011 at 2:52 pm | Report abuse |
  8. Jenna NYC

    I am not surprised at S&P....our Congress should sit up and take notice and start to work together for the good of the country. Repeal Obamacare that will turn back over $2 trillion. It's a disaster waiting to happen. Get rid of Dodd-Frank so called financial reforms – they are job-killers. We can solve this easily....also the corporations should do their part and invest in our country and stop sending jobs overseas.

    August 8, 2011 at 2:54 pm | Report abuse |
  9. Ciedoc

    Really who didn't expect this? Our politicians thought they could screw around and wait till the last minute to pass anything, grandstanding behind political lines and not what was best for the country. Really what they passed didn't do anything. Only trimmed half the amount recommended and even then not till 2015 after elections. Reminds me of Wimpy from Popeye...I will gladly pay you a hamburger next Thursday for two today. The republicans AND the democrats didn't do anything and now act all shocked the country's credit got downgraded...the house and the senate both need to be cleared out! I just hope people remember this debacle come elections.

    August 8, 2011 at 2:56 pm | Report abuse |
  10. Jesseca5

    Downgrading to a AA+ by Standard and Poor's is about the equivalent of being downgraded by Lum and Abner, The Marx Brothers and Snow White and the Seven little people. Not too many people care what our country credit rating is. Life goes on and the stock market continues to rise and fall in a normal manner just like the ocean waves.

    Jesse In Texas

    August 8, 2011 at 2:56 pm | Report abuse |
    • Lynn

      S&P is a Republican shadow company. Just one example of doing all they can to dump Obama in 2012. How dumb investors are to fall for their "chicken little sky is falling" scam. Only problem with S&P's screwing around with the stock market is millions of private citizens are losing their investments.

      August 8, 2011 at 3:00 pm | Report abuse |
  11. Amy

    Brad5013, you like to bash and talk about what other people are doing, but you don't want to solve anythng, just complain that we don't throw money as fast as we can at it.

    August 8, 2011 at 2:57 pm | Report abuse |
  12. Curtis

    SCREW – S&P!!

    They missed; participated in the Financial / Mortage mess just to line their own pockets.

    These are nothing but blow-hard fools that have lost all credibility.

    This is just an opportunity to take "World Stage" at what-ever expense – P_U!

    August 8, 2011 at 2:58 pm | Report abuse |
  13. CM Wood

    George Bush is the source of this and so many other problems. People forget that he left Obama holding the bag - left him to clean up the horrendous mess he had created by deregulating the banks. Obama took office and within no time, days, the deregulated banks were failing and people were losing their homes - all followed by major corporations like GM falling apart. ALL of that was caused by Bush. Obama did all he could. Truth to tell, I'd have preferred to let the greedy so-and-so's fail - but he bailed them out, and months later, they were back at their old game, giving out billions in bonuses to their execs. They should have been jailed when that happened. Still, I can't imagine much worse than to move into the White House and immediately be faced with cleaning up the poop left by the prior administration. We need to tax the wealthy and the big corporations, close off loopholes that allow big business to go untaxed, and stop subsidizing companies who take jobs overseas. THEN we can begin to see a change.

    August 8, 2011 at 2:58 pm | Report abuse |
  14. DruJames

    I am really tired of the finger pointing. Dems vs. Reps needs to stop and stop now. I really don't care who's fault it was or is...we all know there is a problem and we all have to fix it. Pointing fingers is not fixing the issue. Are we ever going to be responsible and stop borrowing to fix our economic problems. Washington needs to stop talking and start working. We as American's need to start holding our representative accountable and stop all the fighting. 100 years or more of rep and dem fighting has gotten us no where but to where we are right now. American politicians need to start being held accountable and stop passing their mistakes onto the American People. Both sides shut up and fix this issue.

    August 8, 2011 at 2:59 pm | Report abuse |
  15. Brian Manny

    I agree with the downgrade and frankly wonder why it wasn't downgraded further. The U.S. government has been acting irresponsibly over the course of the last decade and foreign policy hasn't helped beyond that. We cannot afford to police the world anymore. We need to be a peaceful nation, let others govern themselves, shore up our infrastructure and focus on education while providing reasonable health care by raising taxes.

    August 8, 2011 at 2:59 pm | Report abuse |
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