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. JOE

    The American people don't know who to blame? Are you kidding me Christine Romans? Which party is responsible for our inflated national deficit, Wall Street crashing and the woest economic crisis in America since the Great Depression? Well, if you guess the GOP you're correct. By the way, where are the jobs you promised John Boehner and Eric Cantor? So I understand that our economic rating has declined but what's the big deal? Those Americans who flocked to the polls during the last midterm election to vote for the Party of NO, that is the party that has ruined us, simply sent the message to the GOP and to America that no matter how much you screw up America, we will still be behind you 100%. So our financial rating has declined. Big deal, the GOP ruined America and they got re-elected. Now that is a big deal and a big problem.

    August 8, 2011 at 12:33 pm | Report abuse |
    • me

      Joe- I don't understand your thinking. This crisis has hit after Obama took office and after he continued to spend and raised the debt ceiling. Noone else did that, but him and his policies. As far as asking Boehner and Cantor where the jobs are, what about asking about the jobs that were supposed to be created by Obama after the bailout?? Your logic doesn't make sense to me. You seem to be regurgitating things from media outlets instead of thinking rationally.

      August 8, 2011 at 12:47 pm | Report abuse |
    • buke56

      JOE-Why is it when conservatives talk about the bad economy they never mwetion how Bush took Clintons surplus and turned it into trillion dollar deficit before handing it over to Obama? isnt it obvious that what Obama is guilty of is not being able to stop the downward spiral of the economy created by his predescor? Isnt it obvious that no matter how many times he has called out across the aisle for bipartisanship on this matter, Bohner and company say no, because they want to implement the same strategies that got us here in the 1st place? Never say that this thing got out of control when he took office, it was out of control beforehe took office. If it wasnt then McCain/Palin would be running things. Ugh!

      August 8, 2011 at 3:22 pm | Report abuse |
    • obvious boehner

      Joe, to answer your question: it was the Republican party that pushed for Iraq, Afghanistan, raising the debt ceiling eight times under Bush,. and left us with a record deficit after years of surplus.

      The Republicans screwed us here, and employed a scorched earth approach. they would rather ruin this nation than let a Democrat try to do what's best for the people.

      I say, all GOP and Tea Baggers need to go up against the wall.

      August 8, 2011 at 5:01 pm | Report abuse |
    • Old Artillery Man

      The Republican Party, especially the Tea Party said NO to any tax increase. They were willing to let this nation default on its obligations before even letting the Bush tax cuts expire. This nation’s credit rating was downgraded because we were refusing to pay our debts, not because we could not.

      McConnell is already talking about this being standard procedure for any increases in the debt ceiling in the future.
      Anyone who reads the report and really understands it knows that was being said in it.

      August 8, 2011 at 8:04 pm | Report abuse |
  2. Black Slave Voluntary Day

    Apart from rice and soup you get to choose one snack. Peanut butter or one beef stick. Make a choice and start building your future.

    August 8, 2011 at 12:33 pm | Report abuse |
  3. Marc

    These are the same people that rated the MBS AAA so they were investment grade. What makes them right this time?

    August 8, 2011 at 12:33 pm | Report abuse |
  4. Steve

    Standard & Poors. These are the same folks who rated Bernie Madoff Securities as safe for many years. How soon we forget.

    August 8, 2011 at 12:35 pm | Report abuse |
    • Markassa Wolford

      Boy you've got that right!

      August 8, 2011 at 4:39 pm | Report abuse |
  5. JOE

    What does S&P stand for? Sarah Palin?

    August 8, 2011 at 12:36 pm | Report abuse |
    • Chris

      wow, totally unrelated. Good job moron.

      August 8, 2011 at 12:53 pm | Report abuse |
    • Darren

      Based on your multiple posts, I deem you to be a complete idiot. Congratulations.

      August 8, 2011 at 1:29 pm | Report abuse |
  6. Steve

    Who believes anything from Wall Street anymore? No one from Goldman Sachs or Wall Street went to jail for the Sub Prime mortgage debacle. That has to be the single largest theft in World History!

    August 8, 2011 at 12:38 pm | Report abuse |
    • buke56

      That and the 2000 Pres election which made said debacle possible. Just sayin

      August 8, 2011 at 3:35 pm | Report abuse |
  7. Ann

    I think anger at S&P is unproductive and useless. We should really be angry at Congress for representing us so poorly and embarassing our country. Seriously, the Chinese have a valid point. We were downgraded because of political bickering, and reacting by bickering and pointing makes the situation worse.

    August 8, 2011 at 12:38 pm | Report abuse |
  8. noname

    The S&P people are criminals. They shorted the US government and are cashing in. All of the should be investigated, and their cronies as well. They should be not be jailed they should be executed.

    August 8, 2011 at 12:40 pm | Report abuse |
    • matt

      what world are you living in? S&P has every right to downgrade. after watching the house fight for 2 weeks when this has been a problem for years!! last minute fix is not a fix. its a temp patch. and S&p seen that.

      reps. and dems. both have to get their heads out of their ass. tea party or not. they all need to think about us and not their pocket books.

      August 8, 2011 at 12:49 pm | Report abuse |
    • Anna

      The congress and administration are the peole who let Wall Street do what it does. They even bailed them out so I say they are guilty has well

      August 8, 2011 at 1:22 pm | Report abuse |
    • joedoe_2

      I don't doubt that there could well be a little criminal activity. After all they were the only ones who knew that they would down grade when all the other rating agencies (except that communist Chinese one) had affirmed. They waited until the markets all over the world had closed on Friday before saying (so not to affect the markets). They knew exactly what would happen to stocks and in that way no one else could take a short position. I hope the SEC does a review of S&P's top dogs, cronies, and all their families to see if they were shorting stocks and thus in a position to reap a windfall on their actions.

      August 8, 2011 at 1:41 pm | Report abuse |
  9. finger pointer

    I think it's fairly obvious that the republican mainstream couldn't do a darn thing as long as their sizable radical group kept saying "no compromise". That's why the republicans MUST get back to the center where they belong.

    August 8, 2011 at 12:41 pm | Report abuse |
  10. mudlick

    The Liberals are in control of the White House and control the Senate and was in total control when this collapse began.This administration needs to step down and let people who know something about dealing with financial matters take over.The day of the little spoiled brats running things are over!Democrats have failed this country and need to be put down like a lame horse.

    August 8, 2011 at 12:41 pm | Report abuse |
    • matt

      right!!!! lets re-elect bush and have him save us! he was soooo good for our country. haha jk

      its not the dems u should be mad at. its politics in general. and if you cant see that, then i guess this country doesnt deserve even an A rating.

      August 8, 2011 at 12:52 pm | Report abuse |
    • Darren

      Good call Matt. They ALL play their part in blaming the other party for failure to accomplish anything. In reality, they seldom have the best interest of ALL Americans in mind. It's amazing how everybody is so interested in discussing term limits nowadays.

      August 8, 2011 at 1:38 pm | Report abuse |
  11. Stacy

    Not sure why anyone would be surprised with this? Cannot make a sound decision in a timely manner. Seems like its alway knee jerk reactions to how we do business.. and you wonder why our future generation cannot prepare or think ahead. We need to have Billy Joel re-write the song for todays generation "we didn't start the fire"...

    August 8, 2011 at 12:42 pm | Report abuse |
  12. Andrew

    Let's be clear here: Our "experts" don't understand the economy with any measure of reliability. Laws have allowed nearly every facet of our economic system to become so unnecessarily complicated that it is, simply, impossible to understand or predict.

    Whether or not the downgrade is justified is irrelevant.

    August 8, 2011 at 12:42 pm | Report abuse |
  13. john

    Should Americans march into Washington and arrest congressional republicans and hold public trials on the steps of the Capital?

    Should members of the past administration be arrested and tried for crimes against humanity?

    Are Americans apathetic ?

    August 8, 2011 at 12:44 pm | Report abuse |
  14. Ghost Rider

    The S&P downgrade is appropriate. I'm surprised Moodys and Fitch have not done the same. America is financially irresponsible and it's getting worse. We should be downgraded much lower that AA+.
    Both political party's are to blame for this mess.

    August 8, 2011 at 12:46 pm | Report abuse |
  15. JOE

    One trillion dollars wated in Iraq and half a trillion and counting in Afghanistan and a broken and ruined American economy and US troops still dying in Iraq and Afghanistan and the GOP are criticizing president Obama instead of putting politicts aside and coming together as a nation in time of crisis to move our country forward? First of all, as far as Afghanistan is concerned, my condolences to the families of those lost Navy Seals. Now I have a question! Why are our Navy Seals flying over Afghanistan? Shouldn't they be flying over Crawford Ranch? Let's face it, we are still suffering casualties in Afghanistan and we're still spending billions of dollars there, to be exact some 11 billion a month or something like that and George W. Bush and the GOP are not being held accountable? America, it's time to wake up.

    August 8, 2011 at 12:46 pm | Report abuse |
    • matt

      wow Joe. i cant believe i heard that!! someone with some common (cents) we need more people to understand what joe just said.

      im actually speachless atm!!! nothing more to be said

      August 8, 2011 at 1:00 pm | Report abuse |
    • John

      Glad to see you're putting politics aside and placing all the blame on Bush – typical. So when is Obama gonna man up? We are exponentially more in debt than when Bush left office. . . Is Obama to blame for anyhting. He's no leaders, this is for sure. Call your congressman – what a joke. PS: Hope he had fun at hi birthday party. Not only is he fiddling while Rome burns, but he's eating hamburgers too. God save us.

      August 8, 2011 at 1:02 pm | Report abuse |
    • kdill

      Obama has spent more than bush did in his 8 years.

      August 8, 2011 at 1:06 pm | Report abuse |
    • jean2009

      The Bush unfunded wars, his unfunded Drug plan, the lack of knowledge to accept the fact that we need to raise taxes by the right-wing teapotty squarely where the blame should rest. Forty percent of the deficit President Obama inherited was due to the failure of G. W. Bush.

      "But Most Of The Deficit Results From Pre-Obama Policies And The Downturn

      CBO Projected $1.2T Deficit In January 2009 Based On Spending Bush Authorized; Actual Deficit Was $1.4T. In a January 7, 2009, report, the Congressional Budget Office (CBO) projected, based on spending authorized under the Bush administration, that the federal deficit in FY2009 would total $1.2 trillion. According to the CBO, the actual federal deficit for FY2009, which began during the Bush's last year in office, was $1.4 trillion. [CBO, January 2009 and January 2010]

      CAP: "Single Most Important [Cause Of The Deficit] Is The Legacy Of President George W. Bush's Legislative Agenda." In an August 2009 analysis, the Center for American Progress (CAP) concluded that about two-thirds of the then-projected budget deterioration for 2009 and 2010 could be attributed to either Bush's policies or the economic downturn:"

      "As for the deficit's cause, the single most important factor is the legacy of President George W. Bush's legislative agenda. Overall, changes in federal law during the Bush administration are responsible for 40 percent of the short-term fiscal problem. For example, we estimate that the tax cuts passed during the Bush presidency are reducing government revenue collections by $231 billion in 2009. Also, because of the additions to the federal debt due to Bush administration policies, the government will be paying $218 billion more in interest payments in 2009."

      Had President Bush not cut taxes while simultaneously prosecuting two foreign wars and adopting other programs without paying for them, the current deficit would be only 4.7 percent of gross domestic product this year, instead of the eye-catching 11.2 percent–despite the weak economy and the costly efforts taken to restore it. In 2010, the deficit would be 3.2 percent instead of 9.6 percent.

      The weak economy also plays a major role in the deficit picture. The failure of Bush economic policies–fiscal irresponsibility, regulatory indifference, fueling of an asset and credit bubble, a failure to focus on jobs and incomes, and inaction as the economy started slipping–contributed mightily to the nation's current economic situation. When the economy contracts, tax revenues decline and outlays increase for programs designed to keep people from falling deep into poverty (with the tax impact much larger than the spending impact). All told, the weak economy is responsible for 20 percent of the fiscal problems we face in 2009 and 2010."

      Sorry John as usual you are totally wrong.

      August 8, 2011 at 2:52 pm | Report abuse |
    • Markassa Wolford

      You are so right. Our multiple wars aren't keeping anyone safe. If you are for the troops, then bring them home so they can enjoy their family. Spend the money on infrastructure and reward our vets with jobs building roads, bridges and airports here. We are bombing in what 6 different countries. Oh that's right, NATO is. How many military bases do we have, 700? For what? We pay BILLIONS in bribes to corrupt governments. Let's not forget it was our defense spending that first trained Taliban and propped up Sadam, and endless other dictators. No wonder they hate us over there. We need to get out of these wars. 50 Al Qaeda left? Are you kidding me? Defense Dept. argues we are winning battles, but we are losing the economic war, which is the most effective form of terrorism. We are letting them win by staying there.

      August 8, 2011 at 4:46 pm | Report abuse |
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