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. Markassa Wolford

    I wonder if we can get a Lobby of One million person march going? A Common Sense March to demand to end the wars, have campaign finance reform designed by the people and two-term limits per representative.

    August 8, 2011 at 4:50 pm | Report abuse |
    • Wally J

      I doubt you could get 10,000 to march for finance reform. Most of the people that would want to attend probably could not afford the bus fare to get there. That's the real shame.

      August 8, 2011 at 4:53 pm | Report abuse |
  2. Mark Yelka

    The Tea Party should be happy. They wanted this and more. They want a burned-down house to make way for their New Deal.

    August 8, 2011 at 4:51 pm | Report abuse |
  3. juicedboutnothin

    we need corporations to bring the jobs back to america. dont they care about their country? i dont understand. why do they expect the young or the poor to care if the powers that be dont give a care about anything but the profits. we need jobs. not everyone is white collar. blue collar jobs affect everybody. not everybody goes to college. we need jobs so bad. i am afraid. for myself, and for my kids.

    August 8, 2011 at 4:52 pm | Report abuse |
    • DB402L

      That's why they call them MULTINATIONAL corporations. NO allegiance to the USA at all.

      August 8, 2011 at 4:56 pm | Report abuse |
  4. norfret

    I hope the Teabaggers are happy now. They have been advocating default for weeks. Ya'll be sure to send your thank you letters to Michele Bachmann, Jim DeMint, Rand Paul, Ron Johnson, Pat Toomey, Marco Rubio, Joe Barton, John Culberson, Steve King, Rick Scott, the incoming Congressional freshmen/freshwomen T-baggers and the rest of these "fiscally prudent" bunch of wackos for this 600 point drop in the Stock Market.

    August 8, 2011 at 4:53 pm | Report abuse |
    • Heather

      Yeah. The people that were advocating for exactly what S&P wanted ($4 Trillion in cuts) are the ones to blame and not the party that wanted a clean debt increase w/o any cuts. Ok. That makes sense. Honestly, both parties are big spenders. They both got us into this mess. We need good people (from any party) to get us out.

      August 8, 2011 at 5:19 pm | Report abuse |
  5. McShannon

    There is plenty of blame to go around but I have to agree with S&P. We need to recind the tax breaks that Pres. Bush put into effect immediately. How do you start two wars and lower taxes too? Totally irresponsible!

    August 8, 2011 at 4:53 pm | Report abuse |
  6. David

    We have the Teahadists to thank for this. They took the American economy hostage to get what they want. I didn't make that up, they have been bragging about it (see recent arrogant comments by Senate Minority Leader Mitch McConnell). Sure sounds like terrorist talk to me. Apparently the Teahadists hate America. And now we will all pay the economic consequences

    August 8, 2011 at 4:53 pm | Report abuse |
  7. Jeff

    Our government is inefficient and has forgotten why it exists at all. It doesn't matter which party is in control. Obama is the scapegoat because hes a democratic president, but if a republican was in office it would be the same thing since both sides spend all their time fighting with each other instead of doing whats right for the american people. All the worlds a stage and we are the circus entertainment.

    I think these ratings agencies can all go to hell, and one company shouldn't be able to change a rating that has such a drastic effect on the entire world.

    August 8, 2011 at 4:54 pm | Report abuse |
  8. Gary Bostwick

    The downgrade by S&P is a joke. These are the same book-cookers that gave AAA ratings to all the junk credit default swaps that brought the housing market to its knees. But in terms of where we're at economically now because of it, well, we're in trouble. Because now we have a congress and president who plan on growing the economy by shrinking it. What we need, believe it or not, is for the government to invest in the economy in a much more robust way than the half-assed stimulus bill. We need jobs bills that put America back to work. More taxpayers equals lower deficit.

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

    This is the fault of the Republican Tea Party nuts. Obama put forth a reasonable compromise. Furthermore, the debt ceiling should never have been linked to the deficit. Disgraceful! I will vote all Republicans out.

    August 8, 2011 at 4:55 pm | Report abuse |
  10. Rhona McBride

    SHUT UP!! Get rid of the people at S&P. They are insane. They are purposely putting the whole world at risk to make their point that America needs to get more serious about their debt. How much more serious can we get? This is the beginning of our Great Depression and we can thank S&P for playing god with the world.

    August 8, 2011 at 4:56 pm | Report abuse |
    • DB402L

      Nice try Rhona.......but most of the thinking population watched it all unfold on TV. I was a lifelong Republican- then turned MIddle-of-the road- thinking that we needed more in congress like most of us. But these last few weeks have proven that if you start your negotiations from the middle with the end up somewhere plop in the middle of the right wings agenda. I'm mulling being an FDR Democrat for life now. Could do worse than have an overabundance of compassion for your fellow man. And programs for the poor DID NOT cause our current financial mess. Outsourcing our jobs killed the goose that laid the golden eggs for all of us!

      August 8, 2011 at 5:02 pm | Report abuse |
  11. Wally J

    The downgrade means nothing in the long term. Wall Streeters were ready for this one. It's been in the works for weeks. America has an AA+ rating which is as good as, if not better, than all but six countries in the entire world! The question is...would you want to live in Luxembourg or Denmark for the AAA rating or would you rather be in the USA? Give me the USA anytime, anyday. Yes we have problems and No I don't know how to solve them.

    August 8, 2011 at 4:56 pm | Report abuse |
  12. Mike

    I am and independent vote but this time out of spite I am going to vote DEMOCRATIC ....just to overcome the stupid hillbillies voting for Tea Party

    August 8, 2011 at 4:58 pm | Report abuse |
  13. john

    Will americans march into Washington and arrest all congressional republicans, hold public trials on the steps of the Capital?

    Will previous administration officials be arrested for crimes against the state?

    Are Americans apathetic uninvolved lazy detached?

    Is America missing it's own Egyptian moment?

    August 8, 2011 at 4:59 pm | Report abuse |
  14. Michelle Caple Taylor

    • Isn't this economy a joke? The hungry did not just pop up, the stock has been dipping forever, S&P dropped us to AA to make a point from AAA, the Republican party bcked Pres. Obama in a corner default or do the debt reduction plan and he cant get no support because Racism is the driving force behind all of this. the rich tax out of the bracket and pay no taxes and the oil companies and larger companies continued...continue to get richer and the middle income and poor are left to bear the high cost of interest rates, rising gas cost, food, etc. The Tea Party has more power than Congress. Pres Obama has been disrespected more than any President and yet he has more Dignity and Sense in his finger than all his counterparts, continued so last but not least, PRAY for our economy, for our President because it is God who put him there and it is God who keeps us. Don't worry what the devil menat for bad God will turn around for Good. And remember the wealth of the wicked is laid up for the righteous. Heaven and earth may pass away but my God word will last forever and I'm ready! Oh and my next comment for those who always bad mouthing the President, PRAY or shut the hell up! Yea i said it! lol. Or better yet join the presidential race and see if you can do better?

    August 8, 2011 at 5:01 pm | Report abuse |
  15. Notero

    Considering the state of both the domestic and foreign economies as well as the global political unrest, the DOW should be closer to 8000. Markers have been artificially propped up by governments monetary infusion for the last two years

    August 8, 2011 at 5:03 pm | Report abuse |
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