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. Paul

    The S&P downgraded the U.S. because one faction of the Republican party - the tea party campaign - threatened to allow the U.S. to default on its debts if their demands were not met. They basically announced to the world that they, the tea party, cannot be trusted to honor the financial obligations of the U.S. Minus the tea party, if there had been a normal vote on the debt ceiling, we would not be in this situation right now. There would have been no downgrade.

    August 8, 2011 at 6:40 pm | Report abuse |
    • Take2More

      Hey Paul! Last I heard, all Americans, including elected politicians, have the right to vote their conscience. Yet you would lay blame to anyone who does not vote the way you want. You sure you want to go there?

      August 8, 2011 at 6:49 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. (This is a repost from an earlier reply.)

      August 8, 2011 at 7:02 pm | Report abuse |
  2. Lisa

    The S&P downgrade was justified. It should have been done a long time ago.

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

      Do you even understand what a AAA rating mean's ???

      Obviously not, or you wouldn't make such a ridicules statement !!

      August 8, 2011 at 6:48 pm | Report abuse |
    • Jack H.

      I agree, Lisa. The downgrade WAS justified. And to expand on that, S&P was brave in its downgrade because it knew that all the government crybabies would be screaming bloody murder. Government is a parasite upon us all. S&P merely blew the whistle since the general public had no way of expressing disgust.

      August 8, 2011 at 6:56 pm | Report abuse |
  3. mike_t

    Higher interest rates, more profit, bigger paychecks.

    Let's see how much money the CEOs and other VPs at S&P make before we say it was a self-motivated move.

    August 8, 2011 at 6:41 pm | Report abuse |
    • Jack H.

      Government is a parasite. It brought this CRASH upon us and now lacks the courage to admit what they did.

      August 8, 2011 at 6:57 pm | Report abuse |
    • RandyM

      Your post is chaotic. Higher interest rate and profits do not fit together. Please people do not shoot the messenger and believe the facts that are staring you in the face. Obama and Reid screwed up you have to admit that. It is so crystal clear.

      August 8, 2011 at 7:57 pm | Report abuse |
  4. sam

    The S&P downgraded because the bill passed did nothing, but increase the debt.

    August 8, 2011 at 6:44 pm | Report abuse |
  5. UBJ

    Really? When are we going to stop letting Wall Street run our country? Seriously, who cares if S&P changes the US credit rating? If McDonalds sells one million hamburgers today and makes $10,000 profit and their stock drops 40% and yet they still sell one million burgers tomorrow and make another $10,000 profit, who the heck cares about the stock?

    August 8, 2011 at 6:44 pm | Report abuse |
    • sam

      If McDonalds loses 40% they close even if they make 10,000 profit today.

      August 8, 2011 at 6:47 pm | Report abuse |
    • herpderp13

      I see you have no clue how it all works.....way to make yourself look moronic.

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

      Ummm... That would be everyone who has a 401k, pension plan, bank account, Mortgage, or credit card..

      I think just about everyone should care !!

      August 8, 2011 at 6:50 pm | Report abuse |
    • McGuffin

      Changing interest rates also affect anyone who needs to borrow money for a house, car, etc. So it affects people even if they aren't invested in the stock market.

      August 8, 2011 at 6:55 pm | Report abuse |
  6. sam

    I
    ?

    August 8, 2011 at 6:45 pm | Report abuse |
  7. David Henry (An American Dream)

    As the 600+ point plunge finished today and I was changing from one news source to another; I heard and saw something STRANGE. They kept mentioning the TEA PARTY and some were pointing at the group for the market downturn. It even sounded scripted, like someone said "make sure you get word TEA PARTY in your report". Here is report today on Foxnews: "White House: Downgrade Doesn’t Matter, Unless It’s The Tea Party’s Fault". Why? I am guessing to associate Ron Paul with the movement and turn the American public against the group. We are seeing the mainstream media, trying put (4th and 5th place) unknown Republican candidates as the front runners. On June 18th, Ron Paul won the Republican Leadership Conference straw poll; of course you never hear that from mainstream media.

    Common reporters grow a backbone and report the TRUTH, your kid's future depends on it.

    He is the ONLY candidate who wants: to audit (or removal) the Federal Reserve, bring home the US troops today, shutdown corporate control of congress and get Wallstreet out of the White House.

    August 8, 2011 at 6:50 pm | Report abuse |
  8. herpderp13

    After reading the comments on here, this nation is a lost cause. It's sad so many of you don't realize that there is a spending problem with people in power sepnding like drunken sailors. Hardly any of you realize that so many of the handout takers, leachers, and fiscal bloodsuckers (I.E.: welfare) are destroying tis economy and country. Go ahead and leave your blinders on. I will sit and laugh as your world burns and destroys itself. It's only the beginning.

    August 8, 2011 at 6:50 pm | Report abuse |
    • sam

      Right on Bro. It's the crazy spending that has made S&P downgrade. I am conservative and maddest at the repubs for their role in all this.

      August 8, 2011 at 6:56 pm | Report abuse |
    • razorwire4u

      Yeah, yeah. Another astute observation from the Teabag SS. When the country burns to the ground, it will take you and your children with it. Now THAT makes me happy. Definitely a win for me.
      Back to your Barca-Lounger, shoving shells into magazines for your AK-47 for when the "nigras", "hippies", and young people revolt and try to take away TV remote so you can't watch CSI.

      August 8, 2011 at 7:00 pm | Report abuse |
  9. Lance Elliott

    The debt ceiling crisis. What a misnomer. It should have been called the "OUR DAMN GOVERNMENT CANNOT GET IT TOGETHER" crisis. Who will this hurt? It would stand to reason the middle class, if there is a middle class left. I'm sick of these unyielding children running the country with this inability to compromise. What made me even more nauseas is each congressperson who spoke ended their speech with "for the American people". YOU are so far away from the American people you just as well be on the moon. If the S&P downgraded us, then its likely deserved. Again who will it likely hurt? What say you to that all you "FOOLS ON capitol HILL?" Thought your last moment passage would amount to heroics on your part. OH NO! That backfired on your entire lot. You! ALL OF YOU have utterly failed America. It's time for a major change in Washington. However, you have us so wholeheartedly by the throats with one hand and taking handouts from lobbyists with the other that 300,000,000 Americans are held hostage. It's no longer anger, frustration at your impotence. Only two ways to turn. To lay down in the manner you have forced learned helplessness on your people. Or to attempt to join together to get you to hear us. Neither I see working. Your lab rats formerly known as Americans can do nothing. You have ruined this country....i see it truly at the brink of becoming solvent. Though your personal wealth will grow; 99% of us who haven't such a thing in the connotation of today will cease to exist even more so than if we had simply disappeared.

    August 8, 2011 at 6:52 pm | Report abuse |
  10. McGuffin

    Well the country deserves it; there's no doubt about it. Or, more precisely, the government deserves it. Our leaders are so ineffective and irresponsible that no, we can't be trusted to pay our bills. It's terrible that it had to come to this, but maybe some good can come out of it. Maybe it will wake Congress and voters up to the fact that cold, hard mathematical reality trumps political ideology... yet sadly, I doubt they will pay attention because they're too busy blaming the other side. Reminds me a little of psychopaths who are unable to accept blame for anything.

    August 8, 2011 at 6:53 pm | Report abuse |
  11. AndyMorrow

    I applaud the S&P for injecting some realism into the U.S. economy with appropriate consequences. Congress failed to act and are seeing the cascade effects from their non-compromising irresponsible politics and corrupting corporation influence. I hope this jolts the American voters to take action in the voting booth.

    August 8, 2011 at 6:53 pm | Report abuse |
  12. jrocco

    'Political. Amazing. S&P shoul not try to influence our politics. Its inflence should be purely analytical or descriptive.

    August 8, 2011 at 6:54 pm | Report abuse |
  13. john

    S&P downgrades government debt.

    Trillions lost in stock market.

    Will Americans make S&P pay?

    August 8, 2011 at 6:54 pm | Report abuse |
    • RandyM

      We will because they are correct in their analysis. The other rating agencies wanted to pull the trigger but were to scared. Obama tried to talk them out of it last week. But the SP stuck to the facts and did what should have been done months ago. Obama was warned. SP met with Geitner in April and the tea party took them seriously. Obama thought he could smooze them. The other agencies will follow up after the next debt deal at the end of the year unless serious debt reduction takes place. This is not the end it is just the beginning. It can get worse and it will if the path is not altered.

      August 8, 2011 at 7:39 pm | Report abuse |
  14. bard

    I definitely think that S&P should be downgraded...

    August 8, 2011 at 6:55 pm | Report abuse |
  15. Chirsg

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

    August 8, 2011 at 6:55 pm | Report abuse |
    • McGuffin

      Agreed. It was highly irresponsible. No matter what, you pay the money you already owe, and you figure out how to do things better in the future. The Tea Party did not understand that.

      August 8, 2011 at 6:57 pm | Report abuse |
    • herpderp13

      We have the money to pay our bills without taking out another loan if we just cut sepnding to bare essentials, but no. Libs want to have their cake and eat it too.

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

      NO S&P downgraded after the bill passed and did basically nothing but raise the debt!

      August 8, 2011 at 7:03 pm | Report abuse |
    • RandyM

      To sam, the downgrade was because the debt deal was so bad. SP has an obligation just like an auditor to rate them as they see them. If there rating are not trustworthy then no one will buy their analysis. SP told Geitner that they needed a minimum of 400 billion per year and they did not get even close. It was a very bad deal but Obama thinks he can campaign against the Republicans on cutting SS. Obama is truly an intellectual idiot.

      August 8, 2011 at 7:45 pm | Report abuse |
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