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. ken

    Here is the biggest thorn in my side. This economic mess has been brought on by the inability of the democrats and republicans to make even one responsible decision, the inability of democrats and republicans to strike a compromise, and the utter lack of vision by both parties to see the obvious coming at us.! And guess what are only choices are going to be in the coming election-Democrat or Republican. We cannot solve the country's problem with the same parties that created them. It is so past time for a change.

    August 8, 2011 at 6:25 pm | Report abuse |
    • Havildar

      I know which party I and my friends will not be voting for the present idiots in the Republican teaparty terrorists.

      August 8, 2011 at 6:34 pm | Report abuse |
    • herpderp13

      Both parties are to blame and I consider anyone that votes on party line a blind, idealogical sheep incapable of any intelligence.

      August 8, 2011 at 6:43 pm | Report abuse |
  2. jcd

    The S&P downgrade was necessary and appropriate. It is a wake up call. We never left the recession. The solution lies in the rework of our convoluted tax code. First, ALL must pay taxes, rich and middle class. Exempt the first $35K for ALL people (to protect the most vulnerable) and corporations; then everyone and every business pays 17.5% on greater than $35K. Second, slash costs and the size of government. The federal government is way too involved in everyone's life. No more free unemployment...re-invent the CCC and put these people to work on infrastructure re-building until we clear this crisis...which will be in 4-5 years.

    August 8, 2011 at 6:25 pm | Report abuse |
    • John Schwendler

      I must admit I don't know how to fix our tax code. But when I continuously read in several sources that only half of all Americans pay taxes; when I read that corporate giant GE paid none; when L.A. Dodgers team owner paid none; and other horror stories, I get more and more angry at the injustice of it all. It is past overdue getting our own country in order. Bring the troops home, set up a national defense, not offense, and let's start spending all that former defense budget on us. We deserve it. Let's see, the list includes: homeless; mentally ill; unemployed; medical care; crumbling infrastructure; porous border; starving in America. That is just for starters. We will gain more international respect if we start looking out for ourselves. Cutting off NASA was a great start. Along with the Russians, they got mankind started on its search of the universe, a mind-boggling task. But let it be privately funded from now on. No shame in that. The defense department commission that is about to recommend to Congress that only military benefit packages be overhauled should be ignored. If we are going to make cuts, make them across the board, starting with the rule-makers. After all, we the people elected them. Since when did govt. service become a full-time job with benefits, anyway? America needs to pull its nose out of international affairs, stop attacking countries that never attacked it; stop occupying countries that are too weak to defend themselves, and get on with the business of righting the American ship. Thank you.

      August 8, 2011 at 6:34 pm | Report abuse |
    • We May Be Alive

      the wealthy certainly are in control of the government – but they were never this greedy. don't they have friends or relatives that need social security for retirement and also medicare? maybe not. we are all soon to become casualties of "greed is good".

      August 8, 2011 at 6:36 pm | Report abuse |
    • Matt

      May the markets continue to sink like a heavy stone! This is the only way change will happen. Level the playing field! I will cheer when tomorrow. the market drops another big one.

      August 8, 2011 at 6:40 pm | Report abuse |
    • patrick Davidson

      REmove all entiltments to the elected officials. no more retirement pensions that we pay for. no more medical ins that we pay for . no exclusive rights to the best medical facilities that we pay for. to me, getting electected is like winning the lotto. make it so only those that truey want to serve are there. We dont get the bennifits so why should we have tp pay for them. make them feel normal and experiance the same rides we go through. making them special i think helps distort their view of the world. oh, everyone but ME!

      pat

      August 8, 2011 at 6:42 pm | Report abuse |
    • Ed

      Who is behind S&P anyway? This just seems like more politcal BS... America has and will always pays it's bills as we should

      August 8, 2011 at 6:45 pm | Report abuse |
    • RandyM

      Don't read anything into the fact that some corporation did not pay taxes. If any business has losses and has negative income then they can carry those losses and apply them to a year when they have profits. It has always been this way. I repeat ALWAYS. When a talking head tries to make an issue out of this you have to wonder, if reporters and news anchors have ever even heard the word accounting. This is really basic stuff and any accountant can tell you this. Surely, you know at least one accountant that you can ask this question. The tax code is complicated but much of the complication is due to court ruling and changing laws of constantly modifying them. Most individuals taxes are not that complicated. Businesses are more complicated but this is really as much related to the courts as anything. Besides different business are treated differently because to not recognize the differences would make the tax enforcement biased towards certain industries. There is so much more that can be said here but you should get the picture.

      August 8, 2011 at 6:49 pm | Report abuse |
  3. john

    Is the tea party America's first domestic terrorist organization?

    Will be send our freedom and liberty fighting troops to stop them?

    Will Americans sit back and watch Rome burn without lifting a finger?

    August 8, 2011 at 6:26 pm | Report abuse |
    • jerryc

      Tenth grade huh?

      August 8, 2011 at 6:34 pm | Report abuse |
    • RandyM

      The tea party has been listening to the credit agencies and tried to get Obama to listen. S&P met with Geitner in April and told him what he needed to do. 400 billion per year needed to be cut. Boehner offered increased revenues to Obama but Obama was supposed to offer reduction in credits (EITC). But Obama would not come out and commit so the revenues were pulled. There is easily 400 billion per year to cut without touching SS or the Military. We have all seen the emails that make the rounds that routinely point out the waste. So in essence, the tea party is right and has been right but Obama thought he could make an election issue out of cutting SS and that is why we couldn't get a deal. Obama rolled the dice and lost. Problem is that any "Harvard" grad should have been able to figure this out. But Obama must have been high on dope during that class.

      August 8, 2011 at 6:40 pm | Report abuse |
    • GMan

      Find out after the break, when we return to play – The dumbest questions of the day !

      August 8, 2011 at 6:53 pm | Report abuse |
  4. honeycuf

    So basically Congress screws around, waits as long as they can and I pay for it? Where I work, when I work I get paid, if I mess around and don't work, I dont' get paid. Lets stop worrying about whats best for your party, let's worry about the country.

    August 8, 2011 at 6:26 pm | Report abuse |
  5. Mark

    Wait until the next election and the Senate will be Republican too!

    August 8, 2011 at 6:26 pm | Report abuse |
    • haha

      What are you smoking?

      August 8, 2011 at 6:40 pm | Report abuse |
  6. Mark

    The president has a barbecue and dances the night away while the country goes down!

    August 8, 2011 at 6:28 pm | Report abuse |
    • haha

      Same guy who said the Rep will take over, huh?
      You forgot to mention the BBQ was his BIRTHDAY. You don't celebrate your b-day? Give me a break.

      August 8, 2011 at 6:40 pm | Report abuse |
    • RandyM

      To haha, point is Obama not only doesn't do anything but he doesn't know what he is doing. If the current financial markets and employment data do not prove this to you then like I said earlier"you are drinking the kool-aid"

      August 8, 2011 at 7:32 pm | Report abuse |
  7. Take2More

    S&P is not to blame. Our politicians are like alcoholics who need to take the first step to recovery and admit they have a problem... a spending problem. But rather, they are in the denial stage and playing the blame game. This bodes ill for our entire country. Our US Government must swallow its pride and admit it has a problem. Stop the blame game… that goes for all of us. Get to work to lower spending before our country flounders because the vultures are waiting to feed on us if we fail.

    August 8, 2011 at 6:29 pm | Report abuse |
  8. Tom

    The "my way or the highway" Tea Party is responsible for this.
    Obama and Boehner had a deal that would have worked...........but the Tea Party wouldn't listen to Boehner

    August 8, 2011 at 6:31 pm | Report abuse |
  9. dinmi

    It is about time someone blinked and called it accurately. We couldn't keep going down the primrose path with our rose colored glasses on. While it is scary – it is the adjustment that the markets have needed. It was bound to happen if not now later on – I think S&P got it right. We can't keep printing money and spending beyond our means.

    To those that blame the Republicans or better yet the Tea Party – guess what – there are people out there that get it – you can't keep borrowing and you can't keep spending like there is no tomorrow. We have to level the playing field through either a flat tax or some other type of tax. Letting over 50% of American's not pay Federal taxes is insane. What is even more insane is that some that don't pay taxes actually get money back and where does it come from? Those of us that do pay taxes – yet it seems that some people just don't find that appalling! Lets see – you pay twice....once via their welfare check and then a nice big lump of money via a tax credit....makes no sense to me.

    Make people drawing welfare, unemployment, etc earn their money – there is infrastructure that needs repair – my God people we are paying them to sit on the a$$. They did it in the depression why can't we do it now? Are we "to good" for that kind of work these days?

    August 8, 2011 at 6:36 pm | Report abuse |
    • TheMovieFan

      Companies like GE should be paying taxes...and those companies that put their profits into foreign subsidiaries.

      August 8, 2011 at 6:40 pm | Report abuse |
    • haha

      Um, they are collecting unemployment b/c there aren't JOBS. Make them earn it? I'm sure they would love to if they had a place to work! Not everyone can do construction work.

      August 8, 2011 at 6:42 pm | Report abuse |
    • herpderp13

      If they truely wanted and needed a job, they would learn how to do construction work if they had to.

      August 8, 2011 at 6:46 pm | Report abuse |
    • haha

      Btw, yes, let's talk about the companies who don't pay any taxes. What about that?
      The Tea Party does not care about debt. The Tea Party is being bank-rolled by the Koch Brothers, wealthy industrialists who will do ANYthing (even bring the country to the brink of economic meltdown) to avoid a. being taxed and b. being regulated. Please do some research before you start spouting off about people on public assistant. Look at who the real criminals are here.

      August 8, 2011 at 6:47 pm | Report abuse |
    • haha

      It's not a matter of learning HOW to do it, it's physically being able to do it. It is tough physical labor, even if someone is just standing on hot blacktop directing traffic. Most people are not able to do that. Not to mention that the odor of hot tar is actually toxic to the human body.
      Also, it's seasonal labor. What do you suggest these hypothetical people do in the winter?
      It's all just so simple for you guys, isn't it? Particularly if you generalize and dehumanize the poor. Yes, everyone on assistance is just sitting around on their collective a*sses getting those big fat gov't checks b/c they lovvvvve to eat things like Ramen noodles. I'm not saying people don't game the system, but come on. No-one wants to live like that.

      August 8, 2011 at 6:53 pm | Report abuse |
    • herpderp13

      Your excuses are pitiful. If a little bit of asphaly fumes (HA!) or aching feet prevent you from making a living, you must not want that living very bad.

      August 8, 2011 at 6:58 pm | Report abuse |
    • RandyM

      To haha, the generalization of the poor is no different than a liberal generalization of the rich. Big government is what the tea party is against. Governments are inherently inefficient and wasteful. Business that are inefficient or wasteful generally go out of business because they cannot compete against an efficient producer. This is why governments are wasteful. So if you spend money on the government (tax revenue) then you cannot spend that money on a businesses product. Therefore, your money is spent in a less desirable way. You basically get less bng for your buck.

      Also, you have to work with human nature. 90 percent of us humans will do little or nothing productive if we don't have to. We like being lazy and goofing off. So you cannot have policies that do not take that into account. Us conservatives want to help the poor and we do. We just don't think the government is a good way to do it. It is inefficient and ineffective. Welfare has been terrible for the American Indian and for the Blackman. I understand how it got there but it has to change. The facts do not lie in this case. Welfare brings up most of your criminals and it does give a mentality to the family and to neighborhoods that this is the way it is supposed to be. It will be tough for these people to get off Welfare but that does not mean we should let them stay where they are. It is not good for their soul, their health or their communities. But it is an almost addictive way of life, because it is so very easy. Life is not good when we are given too much. Yes the rich have their problems, but they don't want the government to sustain them so their vices are between them and their maker.

      August 8, 2011 at 7:26 pm | Report abuse |
  10. JonPeter

    Lower the rating to A or below. Our country needs a wakeup call. We simply cannot keep spending more money than we take in. To those who think there is no chance for the economy to recovery without economic stimuli, it is already too late. If the private sectoe fails to respond (as it has) no amount of gov't money can expand the economy. Not all mistakes are solvable with magic and handwaving. Due to debt and mismanagement we are facing 10 or more years of a declining economy. the best we can hope for is to stabilize the economy, tighten our belts and hope to be in a better place in 10 years. the problem with this is the spoiled American consumers wouldn't tolerate that and elect offcials who will promise more of the mindless handwaving, with dire consequences.

    August 8, 2011 at 6:36 pm | Report abuse |
  11. ydc

    So let me get this straight. S&P can't be trusted because they failed to foresee the mortgage back securities debacle? Didn't Moody's and Fitch also fail in this regard as well? Should we not trust them for KEEPING our rating at AAA now?

    The problem doesn't lie with S&P for taking the action that they did. The problem is the massive amounts of deficit spending which is growing rather than shrinking. And the solutions that our politicians come up with amounts to a drop in the bucket.

    And the idea that the rich are somehow benefiting at the expense of the middle class if they get to keep the tax cut that we all got is also laughable. The rich have been paying the lions share of the taxes, to the benefit of the poor and middle class, since federal taxes were first started in this country. I'm by far not in the rich category but it just doesn't square with me to always want to have more benefits from the government but to expect that "those rich guys" pay for it.

    August 8, 2011 at 6:36 pm | Report abuse |
    • haha

      No, they haven't. The wealthy do NOT pay the lion's share of ANYthing. US Companies pay less taxes than any other industrialized nation. PLEASE do your homework. *I* pay more of a percentage of my income in taxes than the wealthy do and unless you are wealthy, you do, too. You have been listening to too much Limbaugh.

      August 8, 2011 at 6:58 pm | Report abuse |
    • RandyM

      To haha, you must be drinking the liberal koolaid because you have no facts. You cannot possibly be this stupid, so that means you are an ideologue. The IRS stats are on their website http://www.irs.gov. This was just to easy.

      August 8, 2011 at 7:06 pm | Report abuse |
  12. Take2More

    The Tea party is a group of Americans who are tired of having our government forcibly collect and recklessly spend our hard earned tax dollars. And for this they are labeled terrorists. I am tired of having my tax dollars spent on useless programs. I am an American and it is my right to speak out. The Democrats are laying blame on Tea party and Republican members and making them sound un-American because they want to lower spending. You know, most Americans are lowering their spending right now because they are out of work. The Democrats are taking a line akin to the McCarthy era.

    August 8, 2011 at 6:39 pm | Report abuse |
    • haha

      That's hilarious.
      You do know you're being bank-rolled by the Koch Brothers, right? They are using you. Do you honestly think they care about the debt? No. They don't want to be taxed and they don't want to be regulated and they are USING YOU to get what they want! Wake up!

      August 8, 2011 at 7:00 pm | Report abuse |
    • haha

      And btw, you are paying less taxes right now than people were in 1950, so I don't want to hear sob stories about the govt "forcibly" stealing your money. And if you really don't like taxes that much than you need to STOP using things that MY tax dollars are paying for. That means,....public libraries, public schools, public roads...the list goes on.
      You canNOT have a budget without revenue! Even in your own personal budget...I'm assuming you have a job, yes? You can't just....not spend money and live somehow.

      August 8, 2011 at 7:02 pm | Report abuse |
    • RandyM

      to haha, I 've never given to the tea party, but what they say is correct. Just because someone gives money to a cause doesn't mean there is a conspiracy. Please read my other posts. It is actually pretty clear. But if you are an ideologue, then your beliefs will not allow you to listen to me or any other pro-tea party person. I don't believe in conspiracy theories. Even if they are about liberals.

      August 8, 2011 at 7:12 pm | Report abuse |
  13. 66Biker

    I think Congress needs therapy...

    August 8, 2011 at 6:39 pm | Report abuse |
  14. Jo Jo

    How is it S&P down rated US credit but gave AAA ratings for all those bundled up subprime mortgages that caused the markets to crash in the first place? Makes you wonder just how trustworthy they really are.

    August 8, 2011 at 6:39 pm | Report abuse |
  15. sam

    The tea party lost. They voted against this deal because there was no real cut in spending. Congress is not serious in getting their act together, both parties. We don't need a tax increase, we need responsibility in spending. S&P had to downgrade because of the out of control spending of money we don't have.

    August 8, 2011 at 6:40 pm | Report abuse |
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