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. john

    If you lost money in the stock market as a result of S&P downgrading government debt, does that give you the right to punish S&P company?

    Are Americans complacent and lazy?

    August 8, 2011 at 12:47 pm | Report abuse |
    • Chris

      I think the american people are sick of hearing from your retarded words. Go away.

      August 8, 2011 at 12:54 pm | Report abuse |
  2. john

    Will Americans march into Washington and arrest the congressional republicans for treason?

    Are Americans apathetic?

    August 8, 2011 at 12:49 pm | Report abuse |
    • Chris

      So the Democrats have no blame? Wake up.

      August 8, 2011 at 12:52 pm | Report abuse |
    • Synapse

      Finally- sanity.
      Profiteering and actions against the good of the country [like holding up the previously automatic raising of the debt ceiling for perceived political gain] are seditious acts, viewed by the world as madness.
      Have you caught how the conservative spin puppets have been portraying the collapse of the world-wide stock markets??? They're claiming it's because of the Italian [long factored in] situation. Sounds like their spin on the citizens following the Presidents request & immediately crashing Congressional servers w/support for a balanced approach [at least 2/3 support] by saying they were getting so much support THAT's what crashed it. THE BIG LIE.

      August 8, 2011 at 1:02 pm | Report abuse |
  3. Doomguy

    My take is that it was the whole congress and white house. Not just the prez and the baggers or whomever most of you want to blame. Its us too. We should have made it more clear to congress to reign in spending or else. We control the vote. Write, email, call and make yourself heard.

    August 8, 2011 at 12:49 pm | Report abuse |
    • Synapse

      Make sure you write/e-mail demanding a BALANCED approach- including a return to the tax rate [for $250K+ per year incomes] that existed in the Reagan/Clinton admins] AND the elimination of loopholes for big oil/big agra/big pharma.

      August 8, 2011 at 1:07 pm | Report abuse |
  4. Steve

    Rising interest rates will cost everyone. I guess Wall Street wants to squeeze what little the middle class has left in assets. Thanks to Ronald Reagan and his legacy, the wages of the middle class has been stagnant for decades. Meanwhile the gap between wealthy ($100 Million net worth or more) and the middle class has grown to historical proportion. 3% of Americans control 25% of American wealth. That is equal to roughly 18,000 households controlling a quarter of American Earnings. When are we going against our politicians and lobbyist and tax the wealthy?

    August 8, 2011 at 12:50 pm | Report abuse |
  5. john

    Should public trials take place on the steps of the capital?

    Is the tea party a domestic terrorist organization?

    Are Americans lazy?

    August 8, 2011 at 12:51 pm | Report abuse |
    • KC

      John: You are out of touch. . . and asking the wrong questions. stop making more noise.

      August 8, 2011 at 12:57 pm | Report abuse |
    • Owkrender

      No, yes, no.

      August 8, 2011 at 12:58 pm | Report abuse |
  6. hippediva

    Say thank you to those lovely teabags. They pulled us and the globe into the toilet, which is where their heads are currently stuck.

    August 8, 2011 at 12:51 pm | Report abuse |
  7. john

    Are Americans missing their Egyptian moment?

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

    I hope the stock market collapses so I can stop shaving...

    August 8, 2011 at 12:55 pm | Report abuse |
  9. MoneyTroll

    I think the S&P is just another group of fools with power. "Oh look, we have the power to bleep with countries!"

    August 8, 2011 at 12:55 pm | Report abuse |
  10. Owkrender

    Thank you, T-Party, for nixing the deal that Boehner and Obama were working on a month ago. Draining the market of trillion of dollars in value is well worth saving billionaires a couple of percent in taxes.

    August 8, 2011 at 12:57 pm | Report abuse |
  11. Joe

    Hooray for S&P! The American people have been sending the message to Washington to stop spending and they ignored us. But this is one message they can't ignore. Good job, S&P! Downgrade us to junk bond status so Congress won't be ABLE to borrow any more money. FORCE them to balance the budget because they're clearly too stupid to figure it out on their own.

    August 8, 2011 at 12:58 pm | Report abuse |
  12. john

    Remember, the troops are fighting for our freedoms and liberty overseas while we here in the US are busy denying freedoms and liberty.

    Is this the model our founding fathers set up for our future?

    Are Americans pathetic and lazy, to involved in debate to notice Rome is burning?

    August 8, 2011 at 12:59 pm | Report abuse |
  13. Stefan Stackhouse (Black Mountain, NC)

    It is only a milestone along the road to national decline. That road is bumpy, but it isn't the bumps that people need to be worried about – it is the fact that we're on that road at all, and what awaits us at the end.

    A century ago, Argentina was one of the wealthiest nations in the world, rivaling the US, and had a promising future ahead of it. A century of hyper-polarized politics and bad governments resulted instead in economic stagnation and lost opportunities. Argentina still exists as a nation, but it isn't anywhere near the top ranks these days. If we don't start getting serious, the US runs a very, very real risk of becoming the Argentina of the 21st century. Most of you have no idea how bad things could get for us, and that it could go on that way for the rest of your lives.

    August 8, 2011 at 1:01 pm | Report abuse |
  14. John B

    Politics as usual, even S&P is playing it. All seem to be willing to bring down half the worlds economy to insure President Obama is a one term President. I am wondering if someone dug deep enough that S&P probably has Tea Party members on the board. This all makes the case for term limits on both houses. How do we have recall electons for Congressman and Senators.

    August 8, 2011 at 1:01 pm | Report abuse |
  15. Hernan

    We have no better example of the failure of the US congress, and perhaps modern "representative democracy" in general, than we see in the current debt situation in the US. It was most amusing to hear John Kerry blaming a small group of populists (with no votes in either house) for the monumental failures, lack of responsibility, and inveterate mismanagement characteristic of the US national legislature. In a just world they would be thrown into prison and deprived of their pensions.

    August 8, 2011 at 1:03 pm | Report abuse |
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