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. Chrisg

    When the tea party starting talking about defaulting on the debt that’s when the credit rating agencies react. No one can say you are not going to pay your bills and not suffer the consequences.

    August 8, 2011 at 5:13 pm | Report abuse |
  2. Mark90210

    As long as we're only willing to ask the top 2% to sacrifice, we're not going to solve our problems.

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

      Where have you been for the last couple of years? The programs for the poor & aged have been steadily cut to the bone already. Our pensions have been allowed to be cut or cut out entirely. Our insurance is a thing of the past. Now that Soc Sec & Medicare is all we have left- you selfish creeps are crying that that too must go! You won't be satisfied until WE are the new working poor........working for peanuts until we die. Gee- won't have to cross that ocean to make $$$$ after all! Large pool of desperate workers right here in good ol' USA!

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

      Why don't we make it the top 3% to pay down the debt faster? Or maybe the top 4% to pay for the poor judgement of voters? How about the top 5%? Who makes that arbitrary decision?

      August 8, 2011 at 5:28 pm | Report abuse |
  3. john

    News from London: cops shoot man, citizens riot.
    News from America: Cops beat disabled man to death people stand around and watch.

    Economic news from America: republicans hold debt talks hostage, Americans bite nails waiting.
    Economic news from Greece: Government imposes austerity measures, greeks riot.
    Economic news from Spain: Government imposes austerity measure, spanish riot.
    Economic news from America: private wall st firm downgrades American debt, trillions lost in stock market, Americans look on with anxiety.
    Economic news from Egypt: millions unemployed, Egyptians riot force president out.
    Economic news from America: millions unemployed, Americans take to blogs, write things about government.

    Anyone notice something odd here....

    August 8, 2011 at 5:14 pm | Report abuse |
    • herpderp13

      The difference is, the Americans are getting exactly what they asked for (more government, more handouts, more social programs) and are baffled why the programs are destroying society, while fiscal conservatives are sitting back and laughing. Let them eat cake.

      August 8, 2011 at 5:25 pm | Report abuse |
    • DB402L

      Programs for the poor DID NOT cause our financial mess. Soc Sec DID NOT cause our financial mess. (How much money exactly was stolen from our trust fund???) The outsourcing of our jobs caused all this! Maybe rich people just don't have this problem- but for the rest of us, when we lose our jobs, we tend to lose our homes. We don't buy much. We stay home (or wherever that is). We apply for unemployment, food stamps, whatever govt program we can to get by.

      August 8, 2011 at 5:36 pm | Report abuse |
    • herpderp13

      Check out deficit spending and how much of what we don't have is being given to the poor, then tell me it's not causeing the mess. The unions and the people demanding more and more and more have made it cheaper for a company to make products 6000 miles away with imposed tariffs and ship those goods in a boat tat gets .00000000000000006 miles per gallon. Thank the unions. That the epa mandates. Don't blame the businesses. Businesses are in business to make money, not to support the ungratefull and leaches of society.

      August 8, 2011 at 5:45 pm | Report abuse |
  4. Tom Ulrich

    Makes you wonder what they actually teach at Harvard and the other Universities of this country. Go ahead, tax my entrepreneurial spirit so I can only make 250K before you drop the hammer on me. The consequences are showing up across the board for you. I only hope you are bright enough to understand that the credit rating goes south, the detriment to the job creators is reflected in the DOW, let alone the fact that at some point the whole darn country will be on unemployment til you run out of that too.

    Hope and Change? Move over Congress, Mr. President, Mr. Geitner, and the rest of you sycophants. You discust me and you offend my family. You dishonor those who died and are fighting for us. You dishonor every single good American worker and legal citizen living here today. You should hang your head down in shame and if you raise it up, do so only if you have something good to say. Something that is "real" and something that will work TODAY!

    I'm ashamed of everyone of you...

    August 8, 2011 at 5:15 pm | Report abuse |
  5. Robert Castillo

    This country should have been downgraded a long time. All the other countries that have public debt larger than their GDP have lower credit ratings. So, why should the U.S. be exempt from this? The world has shifted and it has shifted away from the U.S. and in favor of other countries (China, India, Brazil, and Indonesia) We need to get used to this. The U.S. is no longer producing products as it once did and we are now paying the price. It is now a more dangerous place...look around.

    August 8, 2011 at 5:15 pm | Report abuse |
  6. Stella

    It is easy to blame the President, however, S&P made it clear that the ongoing feuding in Congress made their decision inevitable. Unfortunately, we expect the President (no matter who he is) to "fix" what is wrong in four years, and if he doesn't get it done, he is voted out. But Congress? We keep electing the same people for years and years. Or worse, we fall into a frenzy of fear and elect those that refuse to work with others no matter the consequences.

    August 8, 2011 at 5:15 pm | Report abuse |
    • 2bits

      The President your talking about will over spend by $6.5 trillion in just 4 years compared to $4.9 trillion in 8 years by Bush.

      Both bad, Obama just worse (about 2.6 times worse).

      You can't blame Dems or Reps for this when the President has veto power.

      August 8, 2011 at 5:17 pm | Report abuse |
    • ByTheNumbers

      Congressmen and Senators are elected to represent subsets of the population, not as leaders. We elect the president to lead. It appears that we've elected a community organizer and angry mob leader instead of a decision-maker.

      August 8, 2011 at 5:23 pm | Report abuse |
  7. 2bits

    I hate to say it folks but when your downgraded your downgraded–we all have to deal with it–if we take out too much debt our FICO scores go to hell. USA is no different.

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

    Congress...Congress...Congress. How many of you voted for CONGRESS to be our nation's LEADER?

    August 8, 2011 at 5:17 pm | Report abuse |
    • herpderp13

      Deflect the balme, just like all the "great" presidents.

      August 8, 2011 at 5:26 pm | Report abuse |
  9. 2bits

    America will self destruct before 2020. At that time it's debt to GDP will be over 140% and worse than Greece. And with a country far more divisive and divided.

    August 8, 2011 at 5:17 pm | Report abuse |
  10. Jim Martin

    Standard and Poor's downgrading of the credit of the United States was absurd for a simple reason: the United States is the actual creator of the currency that is used to pay its debts. As long as the USA can print its own money, its use of that money to pay its debts which are based on that money is unlimited. If I could create legal currency and if I paid all my bills on time with it, no rating agency could downgrade my credit. S&P's action was ridiculous.

    August 8, 2011 at 5:18 pm | Report abuse |
    • herpderp13

      I don't think I have ever seen such a display of idiocy. Read up on 1930's Germany. it's not as simple as "print more money" as the back of that money is, essentially, the economy. print more money = sky high hyperinflation.

      August 8, 2011 at 5:29 pm | Report abuse |
    • Anonymous Economist

      YES!!! Someone who gets it. S&P's move is politically-charged and a self-serving attempt to regain relevance after their triple-A rated mortgage-backed-securities debacle that contributed to the credit crisis.

      The U.S.'s risk of default on debt it has issued is absolutely and unequivocally zero, which is why money was pouring into Treasuries today bidding up prices and lowering yields even further (if the downgrade was correctly reflected, the opposite should've occurred).

      August 8, 2011 at 5:31 pm | Report abuse |
    • TechTrend

      When you print money, you devalue your curency which will result in your bonds being worth less. Sure, you paid back the correct amount in US dollars, but those US dollars don't buy as much.

      August 8, 2011 at 5:55 pm | Report abuse |
  11. Indoubt

    I think fhe two party system of democrats and republican should be done away with and all affililiated with it. These parties foster group think instead of individual free thinkers. They also create a target for big business and lobbyists to focus big money to influence their agendas. Without parties they wouldn't know where to focus this money and greed as all public servants would be voted in based on their own agenda. Think about how the debt ceiling negotiations worked and the divide that existed. All these people took sides instead of what was beat for the country!

    August 8, 2011 at 5:21 pm | Report abuse |
  12. UNDfunguy

    The US needs to take a lesson from north of the border and find a King ralph (Ralph Klein, Alberta Canada) to reevaluate all those out of control agencies and slash spending. Then simply rebuild the system that government money is going to the core services (health, education, infrastructure, emergency services, defence). Everything else for the private sector. It is a crime how special interests are able to hijack public funds and continue to increase spending well past inflation. Funny how a high school drop out in Alberta got it but MBAs in the States cannot.

    August 8, 2011 at 5:21 pm | Report abuse |
  13. kpl75

    Maybe this will be a wakeup call to Washington to live within its means. Looking to the Great Depression as a reference point, The Social Security Act was passed during an age when life expectancy was 64 years old. It is now 71. SS was not meant to be collected for 20 years when it was created. This is a huge portion of the national budget. They finally passed Healthcare, SS is the other piece causing our country to bleed to death. If a normal citizen spends more than the income coming in, they go bankrupt, default on loans or have their credit score lowered. Our country is no different. This should be a wake up call for us as citizens to exercise their right to vote - US people, you elected these people that caused this problem with your country's credit rating!

    August 8, 2011 at 5:22 pm | Report abuse |
  14. MaryM5

    To all the tea party freshman and GOP member who signed a pledge to Norquist. You are out, one way or the other,
    your choice. And to all the tea party candidates that called for the Nation to Default. You will never be elected to any office EVER again. Look at the stock market you stupid POS's. Again, you are out one way or the other, your choice.

    August 8, 2011 at 5:22 pm | Report abuse |
    • herpderp13

      You honestly think there is a revenue problem? You think that asking people that pay taxes at 35% to pay MORE is a good idea? How about realing in spending. The revenues for the U.S they bring in through taxes is approximately $200 billion a MONTH. If they can't create a budget to live on $200 billion a month then they are the problem. Your idea of taxing the job creators, movers, and shakers into oblivion will just further cripple the economy. Dolt. Drink that kool-aid.

      August 8, 2011 at 5:33 pm | Report abuse |
    • MaryM5

      Hey Herpi, You will see this next election What the Majority of Americans think about the POS TP and repubs. They are OUT!!!
      BTW, be sure to watch the RECALL elections in Wisconsin this week. lol you will love it!!

      August 8, 2011 at 5:43 pm | Report abuse |
    • MikeSp

      You're just like all the liberal loons, want to blame the messenger, but don't want to accept credit where credit is due. This problem has been building for decades on the backs of poorly implemented liberal policies that has crippled American businesses.

      August 8, 2011 at 5:44 pm | Report abuse |
    • herpderp13

      So Mary, please come at this with fact and reason, not I present my side with facts and reason.

      Say you are at work making $4000 a month. Your expenditures each month total $3475. You can put $525 into savings a month. Now, suddenly you get your hours cut in half. You are only bringing in $2000 a month. Do you continue to spend like you were bringing in $4000 a month or cut your spending to the bare essentials?
      It is simple ecomnomics. Raising taxes on people that are already taxed at 35% is a shear display of the leaching, bloodsucker mentality.
      Please don't paint me with the teabag/republican brush. I am a Libertarian by every sense of the word an d@mn proud of it.

      August 8, 2011 at 5:50 pm | Report abuse |
    • MaryM5

      Hey Herpi, LIKE I SAID>>>>>>>>>>>>>You will see this next election What the Majority of Americans think about the POS TP and repubs. They are OUT!!!
      BTW, be sure to watch the RECALL elections in Wisconsin this week. lol you will love it!!

      August 8, 2011 at 5:56 pm | Report abuse |
  15. Don

    America is highly over rated. Go live in Asia for a while and you will NEVER go back (like me!)

    Please don't hate......24 years in the US Army, current public servant......

    America has been going south for 20 years, wake up!!

    August 8, 2011 at 5:23 pm | Report abuse |
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