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. Sue Rogers

    How hard is "you can't spend money you don't have" to understand? I have to budget every month for medical, food, utilities, rent and other expenses. Why doesn't the government? Also, I hear a tremendous amount from people who have a lot of money about taxing the rich and helping the poor. These people preach at me and drive limousines, own private jets, live in mansions!!!!!!!!!!!!!!!! Let's tax Holllywood and see how much they want to "tax the rich" then. Companies create jobs. If a company can't make money why should it stay in business. Companiies' income funds pensions, etc.

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

      Nota bad idea a special doubling of the tax on Hollywood. I'm sure they would be all for it!

      August 8, 2011 at 7:05 pm | Report abuse |
  2. marc

    Maybe warranted, but this is the same agency that gave all those now worthless CDO's that got us into this mess a AAA rating, then testified in front of Congress that their rating was just their opinion and were not accountable for it's accuracy. American debt is worth as much today as it was yesterday. Their rating is pretty overrated as far as I am concerned.

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

      So because they made mistakes in the past you think they are morally obligated to repeat them?

      August 8, 2011 at 7:04 pm | Report abuse |
  3. Len

    I think the S&P made a subjective, possibly politically motivated move with the downgrade. Ultimately, I think it was neutral and played against the Republicans and Tea Party. They bascically said, "Don't play chicken with the solvency of the U.S." They also indirectly hinted at a balanced approach. Cutting the deficit does not have to be one pronged. You can cut spending and raise revenue to cut the deficit. Missing the quality of revenue increases is probably what the S&P wanted to see given that most of the spending cuts (even $2.4 trillion worth) are not realistic without additional revenue. At the end of the day, it's not about the deficit. It's about growing consumer demand. That means creating jobs. Cutting spending without revenue growth will kill jobs in a time when we need every job we can keep and create regardless if it is a public or private sector job. A job allows a household to consume. You kill that job, you kill the ability for that household to consume and possibly keep their home.. CNN, please ask the question to all Republican or Tea Party member of government you encounter, how will you create jobs? They just say they will, but ask them what the mechanism is! I want to know. So far, all I have heard is unsubstantiated claims. This is the best service that CNN could do for the discourse regarding economic policy in this country.

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

      What the S&P did was assume that the government would fail even at the modest spending cuts it promised.
      Do you really think those promises will be kept?
      They did not commit a math error.

      August 8, 2011 at 7:06 pm | Report abuse |
    • Bob

      S&P has a "little" known subsidary company called McGraw Hill (educational text-mill factory). If wecare about the games that those with more money than YOU (US) play on us, go to your next local School Board meeting and demand that they rescind any contractual obligation with McGraw Hill.

      August 8, 2011 at 7:18 pm | Report abuse |
    • RandyM

      To Bob, SP integrity is on the line here, they have to call them as they see them. Moodys punted but they want next time. The other agencies will follow unless deficit spending is cut and changes are made. Congress has kicked the can down the road until it hit a wall and that is where we are now. SP must call the shots as they see them or they cannot be trusted and no one will buy their analysis.

      August 8, 2011 at 7:49 pm | Report abuse |
  4. John Dupree

    The S&P downgrade is not the whole story behind falling stock and bond prices. But if it were it is the, of all the crises of late, this is the phoniest.
    The U.S. is not going to default probably in my lifetime. The 80% of the economy that is doing all right will continue to get by.
    The large corporations will do very well and continue to pay obscene bonuses to execs who continue to cut costs and jobs and lobby for lower tax rates.
    The other 20% of the economy/population can go to hell as far as anyone appears to care.

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

      I hope you have a lot of GOLD and SILVER. Dollars will soon become worthless.
      Oil stocks and mining stocks are also good; especially gold and silver mines

      August 8, 2011 at 7:15 pm | Report abuse |
  5. Bill Carson

    Obama is and should be toast is all I gotta say.

    August 8, 2011 at 6:59 pm | Report abuse |
    • razorwire4u

      You're definitely WINNING, Bill.
      Now, back to your crack pipe. You've had a busy day.

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

      Oh, so I"m wrong and your messiah is in good shape? You're right, one of us is smoking crack.

      August 8, 2011 at 7:04 pm | Report abuse |
    • Bob

      Turn off Fox News and tune in to the real world Bill.

      August 8, 2011 at 7:12 pm | Report abuse |
    • sammy sozo

      Yeah let's elect Sara Palin. She'll figure it out for us. Or Mitt Romney. Or Michelle Bachman. All lightweights without an idea or a plan except cut taxes.

      August 8, 2011 at 7:16 pm | Report abuse |
  6. jacob

    Try VIsiting CoolCent. c o m

    August 8, 2011 at 7:01 pm | Report abuse |
  7. carol

    i believe its a vendetta from the republicans and that includes the so called teaparty people, because they are stilled ticked that a black man was elected president and they dont really care what happens to the little guy as long as their wall street financial backers make them more money. look at the programs they want to cut–ask them if they went to school on a student grant or loan, then ask them how many of their parents are getting social security and medicare even though they can afford to live without it.

    August 8, 2011 at 7:01 pm | Report abuse |
    • RandyM

      You always can tell a liberal because they speak out of emotion and have no logic or facts behind them. Please give me a break on the conspiracy theories. Do you also believe in Aliens? Do you watch "Ghost Hunters"? Do think wrestling is real?

      August 8, 2011 at 7:52 pm | Report abuse |
  8. carol

    check out some backround on S&P, look and see who owns it

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

      S&P is funded at least in part by the banks whose toxic investments were rated AAA by S&P prior to the banking crisis. They gave Lehman Brothers an A rating just before it crashed. S&P is nothing more than an extension of the Republican party that takes conflict of interest to another level. When is someone with some guts going to step up and start putting the leaders of these banks and credit rating companies where they belong – in jail. The whole financial system is unraveling because of deregulation and the government's inability and/or unwillingness to police the financial system through and through. My God what's it going to take for Obama to get tough?

      August 8, 2011 at 7:23 pm | Report abuse |
    • RandyM

      You must be a complete an utter loon. You really have nothing better to say.

      August 8, 2011 at 7:54 pm | Report abuse |
  9. jordan

    I do not want to vote for either party in 2012.I am sick of their dogpoop.They are not compromising,they are not taking blame, and they are quickly becoming a useless bill we have to pay.

    August 8, 2011 at 7:09 pm | Report abuse |
  10. icysilver

    it is time for the elected officials to cowboy or cowgirl up and own up to mistakes and fix them we don't need a bandaid we need a tourniquet..... stop spending, cut costs, and make a budget that is within what we take in and furthermore quit living and acting like pigs in slop.

    August 8, 2011 at 7:10 pm | Report abuse |
  11. Jennifer

    It's days like today I'm super happy my husband and I cashed our investments out in 2006 to fund a career change. The career change was a success, but we haven't had the money to begin investing again, and a day like today just tells me there's no rush to get started.

    Once Washington regulates the market better, and it's not full of crazy, I suppose we'll start investing again.

    August 8, 2011 at 7:11 pm | Report abuse |
  12. BA

    Look US-APIIGS

    August 8, 2011 at 7:11 pm | Report abuse |
  13. JEM

    The sad truth is that the government is broke and we are entering GREAT DEPRESSION 2. If the stock market was not already overvalued and the investors not already scared as hell, the downgrade would not have had nearly as much impact.
    All this means is that the US government is broke and now everyone knows it.
    The dollar is nearly worthless and now world prices are about to reflect this.
    Our empire is about to end.

    Thanks a lot OLD PEOPLE for voting to destroy the world for your children. I hope those SS, Medicare and free prescription drugs were worth what it will cost your children. Both those who voted Democrat and those who supported the Republicans, you have both destroyed the world.

    August 8, 2011 at 7:11 pm | Report abuse |
  14. icysilver

    S&P did what any credit reporting agency should do... hey you are more of a credit risk your score falls... you want your score to go up show you can manage credit, live within a budget, and never max out your credit card..

    August 8, 2011 at 7:15 pm | Report abuse |
  15. Max

    Why are you idiots even bringing up race? Forget about race for a second... A majority of whites voted for Obama, get over yourself.

    My take is that we need a complete overhaul of our political party's. Like a business, the different divisions (party's) should be working together to do what's best for the people. These people aren't getting the job done... get them out.

    August 8, 2011 at 7:16 pm | Report abuse |
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