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. Mahmoud El-Darwish

    I feel humbled and yet vindicated. I predicted this in Mid 2009. I feel no joy at the reality of a smackdown, but my fellow Americans really ought to take it as a serious wake-up call. As in "it's time to pull our socks up in earnest". The former fantasies of incessant rescues must give way to painful choices, and sacrifices.
    have a listen....
    http://voice123.com/mp3/demos/mahmoudeldarwish%20-%20Radio%20Interview%201.mp3

    August 8, 2011 at 4:15 pm | Report abuse |
  2. AJ

    Every congressmen who signed allegiance to Norquist instead of those they represent should be voted out. 90% of the GOP signed, refused to discuss taxes, and ignored those they represent. Polls show 70% of Americans favored taxes + cuts. Unless that number is really 10%, which is the number of GOP who didn't sign the pledge, the question must come up...who do they represent?

    No U.S. politician in power should ever sign pledges to individuals. Borders on treason.

    August 8, 2011 at 4:16 pm | Report abuse |
    • Beverly, RN

      Well said AJ. I strongly agree with you.

      August 8, 2011 at 4:26 pm | Report abuse |
    • ByTheNumbers

      AJ: No Congressman represents the opinions of 70% of our country. Each and every one represents his or her own district and that subset of the country. Some of those subsets ARE very conservative or very libreal, and those Congressman must represent thier district.

      August 8, 2011 at 4:32 pm | Report abuse |
    • kevin

      For someone who wants to discuss cuts and taxes, why don't you discuss why obama and the democrats won't make the bush era tax cuts permanent? if they let them expire, it will be the biggest tax hike in history to which mostly all americans won't be able to afford a good living. Also, the process of making the tax cuts a permanent thing is backed by donald trump and most executives. Also discuss why obama wants to tax the rich so much?

      August 8, 2011 at 4:39 pm | Report abuse |
  3. DMR

    I seem to recall that S7P rated a large number of sub-prime mortgage backed securities as AAA. I also seem to recall that those securities tanked, meaning S&P created much of the mess the economy is in now, because of poor credit ratings. There is no difference between last Friday and today, expect a credit rating service with a questionable track record made what is in reality a very minor cut in teh credit rating of the U.S. government. It appears the time is at hand to investigate how S&P functions and how they come up with their ratings.

    August 8, 2011 at 4:16 pm | Report abuse |
    • TeaParty_was_right

      Talk to Barnie Frank on sub prime mortgages.

      He backed Fannie May & Freddie Mac

      S&P did what everyone else was affraid to do.

      Your personal debt ratio was as bad as USA, you could not get a mortgage, car loan, job, insurance, or a business loan.

      Good try.

      August 8, 2011 at 4:27 pm | Report abuse |
    • ByTheNumbers

      Right or wrong, S&P is recognized by investors as one source of information for their individual investment decisions. Maybe the president could task the SEC to outlaw reading S&P's credit reports.

      This is reality, and the investors and markets are not reacting in a manner that pleases the president.

      August 8, 2011 at 4:42 pm | Report abuse |
  4. TeaParty_was_right

    Alan, you really need to cut out the caffiene.

    The ones making money are the ones with gold. Like Mr. Spokey dude.

    We broke every where else. 401K are taking big hits.

    Middle class has lost everything.

    Thank you for attempting to blame right wing.

    Good try

    sorry to say – your left wing buddies own this issue.

    August 8, 2011 at 4:18 pm | Report abuse |
    • prufrock91

      Dude, did you really miss the last 10 years? Conservatives ran this country into the ditch with one unneeded war, tax cuts that couldn't be supported by facts. (yes, facts I know that is a foriegn concept for those of you that believe in and invisible cloud being, and/or Santa) The fact that Republicans had a surplus going into the W presidence and with them claiming both the White House and both houses, they proceeded to spend like drunken sailors on leave, and now found god? Really, if you buy that I recommend you stop drinking the Tea...
      When we realize, commrade, that the only difference between us and the old Soviet Union is that they had one party they told us to vote for, and we have two parties that tell us who to vote for..
      You keep drinking the 'Tea' sunshine, and when you have destroyed our country, don't come crying to us 'Libs" wanting us to save you, again...

      August 8, 2011 at 4:29 pm | Report abuse |
    • TeaParty_was_right

      Obama had Dems in both House and Senate.

      No budget was ever passed and approved.

      Where have ypu been since 2008?

      Nice try.

      August 8, 2011 at 4:31 pm | Report abuse |
    • Brian

      What does that matter? They left it to the incoming Republicans to write the budget. They passed the budget and then refused to pay for it. They aren't fiscally conservative...they are fiscially idiotic.

      August 8, 2011 at 4:34 pm | Report abuse |
    • Kelce

      There is plenty of blame to go around. You can blame Obama and his crew for not fixing the problem if you want but DO NOT forget when the recession, bailouts and stimulus packages started. This was back during the Bush presidency if you needed reminding.

      Neither party is free of all guilt nor is neither party completely guilty. This downfall was a group effort.

      Now all this finger pointing is only making matters worse. If citizens, politicians and everyone in between spent as much effort as they do blaming others on making things change for the better then we'd be in a hell of a lot better shape. Hopefully our country grows up before we crumble.

      August 8, 2011 at 4:40 pm | Report abuse |
    • TeaParty_was_right

      @Prufrock91

      you are right. Politians spend money they don't earn. Regardless of party. Tea is new, and after 235 years, it is time to change.

      As of libs being our savior, I'm still rolling on the floor laughing so hard. You guys said Obama was the messiah. How's that working out?

      Hope / Change you can believe in.

      Yes we can.

      And my favorite, Blame Bush and Reps. Always works when you have no clue and no ideas.

      I'll stick with common sense.

      Politics won't save this country.

      Try again.

      August 8, 2011 at 4:41 pm | Report abuse |
    • DanJ

      Prufrock, your own facts are misguided. Democrats had control of both houses from 2006-2010, that's half of your 10 years. Yes, Bush spent a lot over his 8 years in office, Obama has more than surpassed that in a little over two.

      August 8, 2011 at 4:43 pm | Report abuse |
    • razorwire4u

      Ignore this teabagger. He's waiting for the "Great White Hope" step in and set things aright from these "uppity" blacks and "tree hugging" liberals Save your breath there, Teabag. We know a racist, ignorant fool when we see one.
      And by all means, believe everything you read, no matter the source, genius.

      August 8, 2011 at 4:47 pm | Report abuse |
    • TeaParty_was_right

      Own the problem in front of you. Stop looking in the rearview mirror.

      You wanted this- so stop your whinning and get to work.

      2012 is fast approaching.

      Otherwise, we spend the next 8 years blaming you.

      Man up or shut up.

      Own the problem, put all your efforts here, and not in the past.

      Want to stop an unpaid for war, do it.

      Want to have social justice, you pay for it.

      Want to put people back to work, stop unneccessary regulations and revise the tac codes so they 50% not paying taxes, start.

      Want to help every other nation on the world and leave our people uneducated, hungry, and without any retirement money, you can move to a 3rd world doctator country and live.

      For the rest of us, we are tired of you libs- all we have to say is sit down and shut up!

      August 8, 2011 at 4:58 pm | Report abuse |
  5. Jake

    Jake gives US Bonds AAAA rating....DJIA goes up 500 points.

    August 8, 2011 at 4:19 pm | Report abuse |
  6. RSFan

    If we drop a daisy cutter on S&P's headquarters, does their rating no longer count if they don't exist? Might be worth considering.

    August 8, 2011 at 4:19 pm | Report abuse |
    • ByTheNumbers

      That sounds like something Hugo Chavez did when the opposition broadcasting station made him look bad. He just pulled their broadcasting license and closed down the opposition.

      August 8, 2011 at 4:47 pm | Report abuse |
  7. Virginia Yank

    Say what you will about the S&P downgrade but at least they made a decision which is more than the house and the senate could, can or will do. I’m a lot more comfortable with the S&P in charge of our economic future than the Tea Party and Grover Norquest. Don't blame the president as you watch your retirement savings desolve.

    August 8, 2011 at 4:20 pm | Report abuse |
    • ByTheNumbers

      The President walked out of negotiations saying "don't call my bluff on this...", and he took it to the American people. But, the American people don't make decisions. They just complain, and they want it all.

      We nead a leader to mediate decisions between the House and Senate. We don't need an angry mob leader.

      August 8, 2011 at 4:52 pm | Report abuse |
  8. Bayousara

    It's political! That's all. Otherwise, I really don't care because it doesn't affect me.

    August 8, 2011 at 4:23 pm | Report abuse |
    • ByTheNumbers

      If you have any retirement savings in a 401k or IRA, they're going down the drain right now. So it just might be affecting you.

      August 8, 2011 at 4:54 pm | Report abuse |
  9. doc

    S&P was so reliable that they gave countrywide AAA status. Why would anyone trust them. After the mess they put the country in, their reports is as good toilet paper. At least toilet paper has a purpose.

    August 8, 2011 at 4:24 pm | Report abuse |
  10. Vox Populi

    This is a downgrade on congress. Congress should resign.

    August 8, 2011 at 4:27 pm | Report abuse |
  11. gino enas

    Naturally we deserve the rating. No growth, 14 trillion debt and mounting, Chronic deficit, Over 9% unemployment rate not likely to improve soon. We should thank S&P for the downgrade, hoping that finally we wake up and start cutting heavily on spending, bring the yearly deficit down to par, and bring our troops home from the continuous wars we no longer can afford. Gino Enas Author: AMERICA SECRET MIRACLES – JUST FLOATING and others

    August 8, 2011 at 4:29 pm | Report abuse |
  12. Terry Moore

    The credibility of SP is about as good as mine when I decide that I want to be the next Pope.. That a private corporation, deeply enbedded within the "lousy mortgage" deals of the 2008s would dare to rate a country smacks of far more than simple econometric analysis.
    My vote ? : Close than Moody, S and P, and all these "ratings" agencies whose agendas are self serving and have absolutely no concern for the damage that their "possibily incorrect evaluations" may do to the world and to us. Their bosses will continue to dine on lobster and Champagne wherever the economy goes... : AND THAT IS JUST NOT RIGHT !!!!!!!!!

    August 8, 2011 at 4:30 pm | Report abuse |
  13. Austin-Gary: Cooper

    When considering what the reduced credit rating in this country means it is essential to understand that Standard and Poor's Financial Services is a LLC chartered in the U.S. and whose parent company is The McGraw-Hill Companies, a U.S. corporation whose parent company is the corporate United States who they are chartered under and who grants them the authority to perform their credit ratings. The fact is, if you have to seek permission from someone to go into business, you make that person your principal, in that your action/application demonstrates that he/she has authority over you. Now, Standard and Poor cannot devalue the credit of its parent company and their parent company without devaluing itself as their product, and without the consent of the parent company/ies. Additionally, the charter of The McGraw-Hill coupled with its bylaws must state this language in order to have that authority. This means that the congress of the United States governs The McGraw-Hill Companies and its Standard and Poor's Financial Services and granted permission for the devaluing of its own credit score.
    United StatesTM conducted the fraudulent Census questionnaire making everyone property of this corporation. For your benefit look up what trade mark means in Black's Law Dictionary, Fifth Edition and in 15 U.S.C.A. Sec. 1127.
    Now we have an interesting scenario here, the country goes into financial turmoil wherein the congress and presidency attempt to use misdirection on the American People not exposing the facts that overall they control the credit ratings posted from their filial company. This fact opens the door to query why the Congress and Presidency would allow their filial property to devalue them unless the intent all along was devaluation of the dollar and plummeting of the stock market. The Stock market drops and who is buying up these stocks now(?), who will gain overall in this orchestrated redistribution of wealth?
    It will be interesting how this 'De bene esse' ploy serves who and what purpose? That is the question we need to ask ourselves as the puzzle pieces are unearthed to discover the real purpose of this deception against 'We the People.'

    August 8, 2011 at 4:31 pm | Report abuse |
  14. H

    Some things are better left from the public.

    August 8, 2011 at 4:31 pm | Report abuse |
  15. Jim

    It's the toxic politics that have a lot to do with this. The S&P doesn't trust our government to do anything positive and actually take the necessary steps to straighten out the books. Our books are so "cooked" that the meat is falling off the bone. The S&P didn't hold us to any higher standard than any other country in the world. There is a one and three chance that we could be down-graded even more in the next 24 months. I think Moody's is going to down-grade us also. Who would have thought that congress and the White House would have chosen now to enter their second childhood.

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