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. George

    Standard & Poor simply recognized that the U.S. has done nothing to stop the loss of its jobs and job wages by its outsource-happy corporations. The jobs are gone, the wages for those jobs are leaving the country, and the U.S. economy has no way to recover as long as they continue to do that.

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

    Why do Americans believe that god should get America out of the present situation.

    Shouldn't you Americans do the work?

    August 8, 2011 at 5:05 pm | Report abuse |
    • MD

      Unfortunately Christianity has found its way deep into American politics so you do get folks like the Governor of Texas who ask the big man in the sky for help.. I say don't sop their.. Lets ask Buddha, Mohamad and Moses as well 🙂

      It sad since the founding father were much more secular, and right defined the separation of Church and State...

      August 8, 2011 at 5:19 pm | Report abuse |
    • Oridinary Taxpayer

      Look at the back of any US currency in bold letters:

      "In GOD We Trust"

      Not exactly a seperation of CHURCH and STATE.

      August 8, 2011 at 5:19 pm | Report abuse |
    • MD

      That wasn't the founding fathers...

      The phrase has appeared on U.S. coins since 1864 and on paper currency since 1957

      August 8, 2011 at 5:26 pm | Report abuse |
  3. Dave

    So the administration and the Congress got a free credit report and didn't like it. Welcome to the world where the rest of us live. This downgrade has nothing to do with any particular previous administration or the Tea Party. Rather, I think it reflects that we are long overdue to stop profligate spending. Let's stop playing with ephemeral 10 year "budget" wishes and do some serious shorter term planning like the households of America have to do.

    August 8, 2011 at 5:05 pm | Report abuse |
    • ByTheNumbers

      Exactly! They've debated the problems of Social Security and Medicare for decades. They kicked the can down the road until it bounced into the mud.

      August 8, 2011 at 5:12 pm | Report abuse |
    • MD

      Way off here.... S&P clearly stated its the inability of congress to deliver a balanced approach..
      Tea party clearly the ones willing to "hold the US hostage" in order to support their ideology..

      August 8, 2011 at 5:24 pm | Report abuse |
    • jpiston

      People.... S&P is inept; this is the same agency that gave Wall Street Banks AAA rating just before they crash and begged for a bail out!!
      S&P made a 2 Trillion Dollar math error which lead them to their decision to down grade the U.S.... Once the error was pointed out... they still refuse to take back their decision to down grade and chose to use political reasons for the down grade...
      Mean time the other 3 major Credit rating Agencies, who did not commit a 2 Trillion Dollar math error, continue to give the U.S. a 3A rating....
      Looks like S&P are in bed with the GOP's Tea Party

      August 8, 2011 at 7:38 pm | Report abuse |
  4. Sylviane Lelievre

    I saw it coming with congress acting like spoiled brats for weeks, for the whole world to see: They have no shame! Still it was jaw dropping when it happened Friday evening, much more upsetting that the small quake we had in Martinique Saturday night 🙁

    August 8, 2011 at 5:05 pm | Report abuse |
  5. Name*Jeff

    It seems like the u.s. Economy is like a big ponzi scheme.

    August 8, 2011 at 5:06 pm | Report abuse |
  6. MikeSp

    This problem has been building for decades and most of the blame if there is to be blame should rest on the Democrats. They had full control of the both houses of congress and the presidency before the 2010 midterm election, yet pursued an unpopular liberal agenda than proper governing of the nation. Both parties need to seriously look at truly simplifying the tax code. If there is to be an income tax then everyone with no exception should pay their fair share. Yes that should be a flat tax with no deductions, credits or loopholes allowed for anyone.

    August 8, 2011 at 5:06 pm | Report abuse |
  7. Richard

    It's all about the politics of the wealthy and getting the White House back into Republican hands, The reality being is that will not solve the unemployment problem, slow economic growth, the debt, inability of congress to pursue a moderate political agenda and the weakened global economy brought about by the Bush banking failure. For those with short memories, President Bill Clinton balanced the budget, removed the deficit, put people back to work, and gave the country several hundreds of billions for a "rainy day" fund, Bush's horrific mis-manaagement wiped all of that out.

    August 8, 2011 at 5:08 pm | Report abuse |
  8. Name*Jeff

    It seems like
    The USA economy is like a big ponzi scheme.

    August 8, 2011 at 5:08 pm | Report abuse |
  9. Eric

    The United States Government is to blame, that includes the Democrats, Republicans, and everyone on the hill. The people in this country all complain about this side or that, but we the American people are the ones that put the people in the places they're in so, I believe that we the American people in some small way are responsible for the reason that were in this mess. If Americans don't like how the country is being run, its every Americans duty to send out a message with there vote, and due something about what we think is wrong with this country.

    August 8, 2011 at 5:09 pm | Report abuse |
    • DB402L

      That is assuming that the elections are actually not stolen????

      August 8, 2011 at 5:12 pm | Report abuse |
  10. ByTheNumbers

    The impact Social Security and Medicare problems will have in the future have been known and debated for decades. It was only a matter of time before this happened.

    August 8, 2011 at 5:10 pm | Report abuse |
    • jpiston

      You're blaming this fiascal on Social Security & Medicare..... You need stop watching Fox News.... let me remind U of the Cost of the 2 Wars; Wall Street Bail Out and the Bush Tax cuts for the wealthy.... and the lost Tax Base due to the Manufacturing Out Sourcing + the Tax incentives allowed for the outsourcing.... Let me also remind you of the massive Multi Trillion dollar Trade Deficit... Don't you dare believe that BS about Social Secuity & Medicare are the causes of U.S. Budget issues... Wake up

      August 8, 2011 at 6:05 pm | Report abuse |
  11. Sick of this crap

    While the US government has taken on quite a bit of debt (for various reasons: 2 unpaid for wars, tax cuts that the wealthy didn't need, bailing out the financial sector after S&P looked the other way), the morons in Congress have pushed this country to brink of collapse. It is not just S&P, not just GWB, not just the bailout of the financials, not just the unreasonable Teabaggers. This is a catastrophic collapse of the economy. Quit calling it a recession. This is a world wide depression. Stock up on food and water, you are going to need it because the clowns in Washington are unwilling to pull their heads out of their behinds and stand up to corporate America and Wall Street.

    August 8, 2011 at 5:10 pm | Report abuse |
  12. jpiston

    The sad thing about this whole conspiracy, between, the Extremist (Tea Party) in the GOP & their weak Leadership, S&P, Wall Street (it's computers programmers), Big money Lobbyist and don't forget the Supreme Court (who open the money flood gates to fund these radicals), is the irresponsible journalism supporting these Extremist whose only goal is to defeat President Obama at any cost. Even if it means taking the U.S. Economy over the cliff.
    Much of the instabilty in the Stock Market is due to the Global Economy. But you wouldn't know it by listening & watching the so-called Cable News Networks.
    Patriotism has gone out the window.. Political desparation has made the GOP Leadership go Pyscho!!! To hell with the country & it's people.... it's all about the GOP Power Grab & the Millionaires & Billionaires...
    Too much one sided Journalism... Too much emphasis on GOP Goals & objectives... very little emphasis on what can be done for the People... for the country... or the economy..
    The GOP Leadership should be called out, not praised for their effort to block anything and everything to take down this country to get to the President... This looks Treasonist to me!!

    August 8, 2011 at 5:10 pm | Report abuse |
  13. DB402L

    Wall Street greedy corporations outsourced our jobs so that they could make even more money. These people are the absolute best & brightest, most educated on earth. They knew exactly what the consequences would be if they took away the power of the American consumer. They knew they would be killing the goose that laid the golden eggs! What would be in it for them.....besides a weakened country that could no longer regulate them. Why would anyone invest in the enterprise that is trying to destroy our country & govt.???? We should all be buying US govt bonds as a show of support!

    August 8, 2011 at 5:11 pm | Report abuse |
  14. JerryDez

    Totally the Tealibans fault – create bogus crisis, ignore Economics 101 (you don't cut spending in a recession), and then blame everyone else for their recklessness.

    August 8, 2011 at 5:13 pm | Report abuse |
  15. tunatofu

    They shot themselves in the head. They lowered the rating and smashed the stock market. They are as stupid as those mortgage companies that wrote adustible rate mortgages, jacked them so high folks couldnt pay, but never really told you WHY they jacked them up in the first place...except that they COULD. Then they whine when all the defaults hit and their bottom line tanked. What exactly did S&P EXPECT was gonna happen? Well, suck it up because the government you just downgraded wont be bailing you out when you run out of money.

    August 8, 2011 at 5:13 pm | Report abuse |
    • Oridinary Taxpayer

      Great Point!

      If you look at what happened on the Hill with the debate (because its not settled yet), Congress could not come together behind closed doors and the world took notice. Representatives couldn't wait to get their "15 minutes of fame" by arranging media talks prior to the meetings. What happened to being discreet?

      If you approach this as a Business Deal would you go into business with a company that has On-Going Concern (Look it up, accounting term). In its most basic case, do you have enough to pay your creditors and continue business.

      Walk into Circut City where you purchased your TV and try to exchange the defective set (No longer in business). On-Going Concern. Not saying the US has or will ever fault on payments but when the world see's outside bickering, I as a business owner would have cause for concern.

      Can't blame S&P as their model is based on assessing and valuating businesses, write your congressman because its their fault. Then write yourself for even thinking about voting for them......

      August 8, 2011 at 5:44 pm | Report abuse |
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