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. Hu

    Can you say {Implode}?

    August 8, 2011 at 5:57 pm | Report abuse |
  2. Chris

    If I was overextended on my personal debt my credit score would go down. Why is the feseral government any different. They have gorged on spending for the last decade and now they are paying the price. This isn't S & P fault. This isn't the tea party's fault. This is the fault of all the American's who have sat back and let politians spend irresponsibly. I have sat back and watched it, so it's my fault too, but no more.

    When we stop playing the blame game and own up to the situation, we will be on our way to solving the problem.

    August 8, 2011 at 5:57 pm | Report abuse |
    • Fed Up with CNN

      I agree with you! We need to be more aware of who we vote into office and if they will be responsible about our financial situation.

      August 8, 2011 at 6:01 pm | Report abuse |
    • Mark

      The problem is we have a president who is clueless as to what's going on.
      He only has his agenda of spending, spending, spending and taxing, taxing, taxing.
      How he bragged that he will veto the cut, cap and balance proposal. If he had accepted it, then the future of our country wouldn't be in such jeopardy.
      Everyone should write to the White House that it is not the Congress, but him at the root of the problem.

      August 8, 2011 at 6:05 pm | Report abuse |
    • Bud

      It is the tea party's fault. I submit to you that if your debt was over extended, no matter who's fault it is, that if you don't take in more revenue then your never getting out of debt. Go ahead and use your family budget as an oversimplified example. Their is a point of no return on a family budget that if you go beyond that then you have to either increase your revenue of file bankruptcy. I think we all agree september 11th was a catastrophy that was unforseen. We had to go to war. It's much like a family who gets devastating health news on the bread winner in the family. The bread winner is going to be fighting for his or her life and the medical bills are going to be in the hundreds of thousands of dollars. That family is either going to have to increase it's revenue of file bankruptcy. It's no different with the federal government. War is expensive. Defending this nation is expensive. I think over half of the national debt has gone to defend this nation. Alqaida exacted a horrible financial cost on this nation. We will never get out of debt if we don't increase our revenue. We got to get every able body, unemployed, american to work so they can pay taxes, we got to increase taxes by either ending some current tax cuts or increasing taxes in other areas. As usual the wealthy have to pay more because they got more. It's real simple and thats the way I see it. Good Day, Joe.

      August 8, 2011 at 6:16 pm | Report abuse |
  3. cedaly1968

    I think that it is somewhat surprising for S&P to go straight to a downgrade without a warning. I also think that S&P is the lone credit agency issuing the downgrade in the US and may have had some mathematical errors involved. I HIGHLY question the independence of S&P and also their HORRIBLE track record given their past rubber stamping of mortgage backed securities. I also think that officers from organizations such as S&P should be barred from all political interactions given that they could make a move that could wipe out $2 trillion in value in a single day, kind of like today.

    That being said, they have a few valid points in the note in that there is greater political risk in the USA given the hardened stances of the political parties and I believe that can lead to economic risk. Their failure to look down the road and pass significant reductions or even pretend to have a long-term plan is also a risk worth noting. But, in the end, if WWIII kicked off tomorrow, where would you put your money? US Treasury Bonds.

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

    I believe if the dems and Obama want a second term then they better find a real solution in this dfining moment of our economic history. Rich man Romney will only widen the class warfare the rich is raging against middle America. S&P's opinion has no relevancy since they lost thier credibility a long time ago. America is only as strong as it believes it is.

    August 8, 2011 at 5:58 pm | Report abuse |
    • herpderp13

      What about Egan_Jones? They downgraded the US Credit rating in July.

      August 8, 2011 at 6:06 pm | Report abuse |
  5. 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. it is time for congress to do the same as what any responsible person would, if you dont bring in enough money, then work harder. if your debt is out of control then get your debt under control

    August 8, 2011 at 5:58 pm | Report abuse |
  6. Bulldawg

    What is sad is that the powers to be in DC will not understand what S&P or Moody's is saying about their failure to do their basic job. If they really cared they would cancel their six week vacation and get back to DC and do their jobs they where elected to do. Instead, they will spend the next several months pointing fingers and blaming the opposing party. Until there is term limits nothing will ever change.

    August 8, 2011 at 5:59 pm | Report abuse |
  7. john

    American corporations hold trillions in reserve. America's unemployment at 9.2%.

    republican party hold Americans hostage in debt talks. American debt downgraded. Millions lose money in stock market.

    Will Americans take to the streets and seek revenge?

    Or will they sit by apathetic uninvolved and lazy?

    August 8, 2011 at 6:00 pm | Report abuse |
    • herpderp13

      Only idiots would blame those that want to cut the out of control spending. You really think it is a revenue problem when those "fat cats" are being taxed at 35%? Dolt.

      August 8, 2011 at 6:08 pm | Report abuse |
  8. ScrewCNN123

    Purely vindictive politics.
    You can bet the fat cats who pull S&Ps strings moved their huge fortunes into safe holdings before they screwed us over.

    August 8, 2011 at 6:01 pm | Report abuse |
  9. Chris in NC

    Well, there's an interesting lesson here for folks just entering adulthood: don't deny yourself travel; don't put off serving in the Peace Corps or acting out your dreams just to "save for retirement." Put off having any family and enjoy life – don't put off life "saving for retirement." At 65-70 you'll have no memories, adult kids living in your house and the [future] economy will have wiped out your savings anyway.

    August 8, 2011 at 6:02 pm | Report abuse |
  10. Onlyurself2blame

    That's exactly what 2 wars and an overstretched empire will get you. Keep it up America, your militarism and over-reaching power is what has gotten you here in the first place. No empire has ever been able to sustain such maneuvers and come out on top. Eventually it catches up with you. I don't wish you any harm, but you have only yourselves to blame for having allowed this for sooooooo many years, not just Bush, but dating back to Vietnam and all the other foreign wars that you have inserted yourselves into. Protect your borders, take care of your domestic issues and don't get drawn into anymore wars like you should have been doing all these years and you'll be fine in 10-20 years. The days of SuperPower are over.

    August 8, 2011 at 6:02 pm | Report abuse |
  11. Brad

    To CNN commenter stooges999: Calling the people in Washington "clowns" is a horrible insult to all the hard working, professional clowns the world over. You should apologize!

    August 8, 2011 at 6:02 pm | Report abuse |
  12. john

    Americans elect republicans to congress, congress holds public hostage over debt ceiling talks, gov debt downgraded.

    Americans take to key boards to blog.

    Is something wrong with Americans?

    August 8, 2011 at 6:03 pm | Report abuse |
  13. jimbowt

    Pres Obama just gave a speech saying the S&P downgrade got it wrong, "America is a AAA country." Reminded me of a turkey with his head buried in the sand, and a big S&P guy sneaking up behind him with a huge paddle fixing to bust the turkey's – you know what !

    August 8, 2011 at 6:03 pm | Report abuse |
  14. Bud

    As a democrat I could easily blame the republicans so I will! First I'm going to cry over spilt milk but thats what debt is about spilled milk. The republican party spear headed the invasion of Iraq. Iraq is a country who had a horrible leader, in sadam Hussain, who's regime ruled with brutality and without mercy. However Iraq had nothing to do with the attacks of september 11th. Unless some unproduced intelligence says otherwise we simply invaded Iraq because we could. The invasion of Iraq has cost us over 4 trillion dollars directly and who knows the cost indirectly. I mean no one is questioning the fact that we had to respond to the attacks of september 11th but Iraq? Really!!! The threat was in Afghanistan and Pakistan yet we attack Iraq? I still can't figure that one out. I mean if you want to take out horrible and oppresive leaders take your pick, Syria, Iran, Libya, need I go on? Equally it was the republican party who spear headed the bail out of wal-street. Finally it was the republican party, and tea baggers, who were playing politics instead of meeting President Obama in the middle on the recent debt ceiling vote. Another example of a political party worried more about winning the next election than about doing whats right for the people. Sure the democrats do the same thing but it seems when the republicans do it that the damage is more severe and long lasting. No one can say the debt ceiling debate was about helping this country. Bullcrap! The debate was about making Obama look bad so the republicans can have a fighting chance on election day. I can't wait for election day personally. I am voting straight democratic ticket. I'm not even looking at the candidates. Anyone will do as long as they are not republican or independants who are really right wing republicans. Good Day, Joe.

    August 8, 2011 at 6:03 pm | Report abuse |
    • herpderp13

      By blindly following partisna politic, people like you are park of the problem. Does it tingle when obama's tip hits your tonsels?

      August 8, 2011 at 6:19 pm | Report abuse |
  15. Michael F

    And so the circus continues: The debt ceiling debacle had nothing to do with economics and common sense, it was all about bullying, ignorance and self preservation all wrapped up in a sanctimonious chant from both sides of `The American people want.....fill in the blank'. The democrats lacked the courage of their own convictions and failed miserably to put the argument that what really counts to Americans is jobs, jobs, and more jobs in these difficult economic times. The Republicans of course went slinking into the corner , cowering and sniveling from the onslaught of her holiness, queen Michele. Neither she or they appear to have absorbed even the most basic elements of Economics 101 that would have told them that with the economy on the brink of a double dip recession we need money pumped into the economy, not the life sucked out of it. So a deal is struck, spinelessness reigns and costs are cut with no improvement in revenue. My 15 year old could have figured it better. Now fast forward to Saturday. S & P announces the downgrade. In their enlightened opinion, the US is a riskier bet this week. Never mind that these are the same people who valued the Credit default Swaps that led to the economic meltdown at a Triple A rating! Why would we listen to people who clearly are either up to no good or alternatively are incompetent beyond belief? Fast forward again to Monday. Now the lemmings take over our lives: The debt spectacle is over so now the furry fools are sticking their heads up and wondering what else they should be fearful of. Oh, yes, Greece is still ugly, hmm and what about Spain? Or Ireland? Not good. And all those speculators must know something dark because they are buying Gold at 1700 an ounce! Good grief, I better sell!!! So the lemmings rush the cliff and plunge headlong into the ravine. Pity they are tied to all of us, the regular guys, who just worked hard for our families these past 20 years, made a few bucks and put it into our houses for retirement because that was a safe investment. I'm sure everything will be all right though. Lloyd Blankfein said so.

    August 8, 2011 at 6:04 pm | Report abuse |
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