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. Ch

    Blaming the Tea Party for all this is like blaming an auto dealer when he turns down your credit application. US has spent too much on credit. It's time to do a little self-analysis and realize that continued, run-away spending will dump us on the pile right next to Greece.

    Recessions expose bad gov't behavior by dropping revenues a bit, resulting in a gov't that starts running around like its hair is on fire.

    STOP SPENDING SO MUCH! Be responsible and act like grownups.

    August 8, 2011 at 5:46 pm | Report abuse |
    • DB402L

      The recession didn't "drop the revenues a bit" . Actually the outsourcing of all our jobs did that! THEN the recession hit because, while the Wall St group were giggling & counting their money- the rest of the country was losing our homes, not eating out, not shopping, going on govt programs, etc, etc, etc,

      August 8, 2011 at 5:52 pm | Report abuse |
  2. monzar

    I do think all members of the Congress , Bank officers and S&P officials should be jailed. Corruption, greed and disregard for the rest of the people is the only force that moves all of them , regardless of the party they belong to .

    August 8, 2011 at 5:47 pm | Report abuse |
    • DB402L

      I, for one, am proud of the Democrats for once. This time they actually found their backbones & stood up for the rest of us!! This is all laid on the heads of the tea partiers- they didn't care if they crashed our country. If it were all over the rising debt.....by defaulting & causing the govt to pay higher interest on that debt wouldn't make sense- now would it?!

      August 8, 2011 at 5:56 pm | Report abuse |
    • Lee

      You are 110% RIGHT ON THE MONEY. GREED IS OUT OF CONTROL.

      August 8, 2011 at 5:56 pm | Report abuse |
    • herpderp13

      Yes, greed is out of control, by the ones demanding government handouts and living off the income of others.

      August 8, 2011 at 6:20 pm | Report abuse |
  3. chmch

    There's just no quick fix, but the most salient fact I can give is this: 3 top tier American companies, Google, Facebook, Apple, employ about 150,000 between them. The basic maths of the economy have drastically shifted and old-school thinking will not fix it.

    August 8, 2011 at 5:49 pm | Report abuse |
  4. docserveralson

    If this doesn't lead Congress to come back to resume seriously grappling with these issues, it's a sure sign that the American Century is OVER. But we already knew that.

    August 8, 2011 at 5:49 pm | Report abuse |
  5. E M Short

    Companies in the US that outsource their work to cheaper countries should have to pay a special tax, as they are causing significant job loss in the US. Oil companies should no longer have subsidies. Clean up the abuses in Medicare & Medicaid (there are TONS).
    Rich is relevant only if you are not "rich" and everyone's perception of "rich" is different. If the person complaining is receiving government assistance–shut up. You don't know what you're talking about. Who do you think pays the highest taxes (ie your "assistance")?
    If politicians and government departmental employees were less worried about job security and realized their jobs are still going to be there (the need for the job will still be there) even if they do them correctly, maybe then something positive would get done.

    August 8, 2011 at 5:50 pm | Report abuse |
    • DB402L

      Many people receiving govt assistance now paid into those programs all of their lives. Would you begrudge them getting assistance now that they need it?

      August 8, 2011 at 6:11 pm | Report abuse |
  6. Penelope

    THANKS SO MUCH! At age 60, business & politics have wrecked my 46 years of work. I don't have "time" to wait it out or start over.

    August 8, 2011 at 5:50 pm | Report abuse |
  7. Tony Janca

    Quite honestly with the amount of our debt – we deserve to be downgraded. If congress will not take away Obama's blank checks maybe the market will

    August 8, 2011 at 5:51 pm | Report abuse |
  8. KennyG

    Let's stop blaming the Democrats for not cutting useless programs like the DOE, HHS, and many more, plus boondogle programs. They have received blame enough for poorly running the country for the last two and one half years, and seemly more interested in promoting social issues-Gay issues, right to abortion, etc.

    August 8, 2011 at 5:52 pm | Report abuse |
  9. Anonymous

    S&P gave AAA ratings to packaged junk morgatges ...with this they started the fake demand for mortage backed securities ...they should be OUT OF BUSINESS ....Fools.

    August 8, 2011 at 5:52 pm | Report abuse |
    • herpderp13

      What about Egan-Jones, who downgraded the US in July?

      August 8, 2011 at 6:22 pm | Report abuse |
  10. mo

    What most idiots are failing to understand is that without a well funded government (what we have) we are on a road to NOWHERE.. who will fix the streets and build infrastructure? Who will provide vaccines? who will aid in disaster relief? who will sacrifice their lives for our defense?
    Debt ceiling = should not exist.. you can't put a price on GOVERNMENT
    all members of the Tea Party should be outed for Treason.. the founding fathers would have had those morons shot..

    August 8, 2011 at 5:52 pm | Report abuse |
    • herpderp13

      You really think the founding fathers wanted to saddle the Ameircan people with an unbearable debt? You really need to find out what the American revolution was about.

      August 8, 2011 at 6:23 pm | Report abuse |
  11. mike

    Thank you USA and your loony fringe Tea Party for screwing things up.You know they are, amongst other things, a bunch of racists poorly disguised.It was your Republican president who gave tax breaks to the rich and bogged you down with unnecessary wars.All the super rich businessmen do is move their production plants off to sweat shop Asia.

    August 8, 2011 at 5:54 pm | Report abuse |
  12. Alice

    This is just terrible. If the Republicans don't wise up and grow up soon there won't be a country left to govern.

    August 8, 2011 at 5:54 pm | Report abuse |
  13. LiberalJustice

    The Bush Tax cuts and the interest on the national debt alone could pay for MEDICARE.

    The Bush Tax cuts = 400 billion a year.

    The interest on the Republican tax cut debt costs us 250 billion a year.

    America was on the path to PAY OFF OUR DEBT by 2012, according to a 2001 report by the CBO.

    George Bush reversed our responsible fiscal policy and doubled our debt.

    To Rebuild America, repeal the Republican Tax Cuts and spend money repairing our infrastructure.

    We could convert current energy bills into a direct jobs programs if Power Corporations, and or Governments, would sell bonds to pay for solar power installations for homeowners.

    Homeowners could get a reduced rate as an incentive to opt into this program and have solar panels and water heaters installed.

    This would create jobs, and the power corporations would collect energy payments as usual to pay off the bonds during the lifetime of the solar panels.

    For the interest on the national debt, 250 billion a year, we could install solar systems on 10 million homes a year, all 100m homes over 10 years.

    August 8, 2011 at 5:55 pm | Report abuse |
    • herpderp13

      You seem to want to blame bush for all this, but what has Obammy done to help correct it, except by continuing 2 wars and trying to enter a 3rd and drive us deeper into debt?

      August 8, 2011 at 6:25 pm | Report abuse |
  14. LiberalJustice

    President Obama.

    S & P has it correct.

    America is a dead-beat country as long as these Republicans violate the 14th Amendment and hold America's debt and our Grandparents Medicare and Social Security hostage to Republican demands for spending cuts and the Republicans unreasonable refusal to raise taxes back to when America had a middle class economy.

    Don't blame the S & P, blame the Republicans.

    The Reagan top rate tax cuts (70% to now 35%) cost us 4 trillion over 10 years, 12 trillion over 30 years.

    The Bush top rate tax cuts cost 4 trillion over 10 years.

    The bad economy cost us 400 billion a year in revenue since 2008.

    The interest on the Republican tax cut debt cost us 250 billion a year, at AAA interest levels.

    Manufacturing in the US in 1965 was 53% of our economy, in 1988 39%, in 2004 9%.

    Average tariff rates 1945 to 1970 6%, 1975 to 1995 3%, 2000 to now 1.3%.

    Top tax rates from FDR through Eisenhower were 90%.

    Top tax rates from Kennedy through Carter were 70%.

    To Rebuild the American Middle Class we MUST REPEAL the Republican Tax Cuts.

    August 8, 2011 at 5:56 pm | Report abuse |
    • herpderp13

      Would you continue to work if 90% of your income was given to leachers? Would you continue to work if 70% of your income was given to Shaniqua and her 5 chilruns? You have no idea of economics, so stop trying.

      August 8, 2011 at 6:27 pm | Report abuse |
  15. mike

    I knew it was going to happen, It is like when a parent tells a child, quit jumping on the bed or your going to get a whippen, well they told congress make these cuts at this amount or you will be downgraded, well they just kept jumping on the bed. Now we are all going to pay, I hope they listen, because they are saying, Make better cuts or you will be downgraded again, but I bet they will just keep jumping on the bed.

    If my creditors tell me my balance is to high and it is going to hurt my credit. I listen.

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