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. Greg

    Way to go GOP ! Is this the 95% you asked for. Now just figure out how to blame Obama for it.

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

    The parents (we the people) just took the credit cards away from the 2 kids (congress). Congress was to busy throwing a fit that they forgot the world was watching. Now kids, buckle down and spend within the families means.

    August 8, 2011 at 7:17 pm | Report abuse |
  3. Larry

    What we need now is the full force of the United States legal system to go after S&P. Surely many of them have done something illegal. They could not have gone that far without stepping on someone or stealing someones money. They should be brought to justice and held accountable for they're crimes against humanity.

    August 8, 2011 at 7:17 pm | Report abuse |
    • johnny

      Are you drunk? Your exactly what's wrong with this world. Rather than focus on the issue you've skipped your meds and made us endure some of your psychotic ramblings.

      August 8, 2011 at 7:39 pm | Report abuse |
    • RandyM

      Shoot the profit of doom, and don't take his advice. Yea that is the way to handle it.

      August 8, 2011 at 8:07 pm | Report abuse |
  4. abradby1

    I think that the S&P downgrade was fair because more revenue needs to be raised along with the cuts. New revenues are like getting a part time job for the average person. When you get behind in your bills, regardless of how it happened or who's responsible, you have to either borrow more money, refinance, or get the money up by working more hours or getting a part time job. Most part time jobs don't last long anyway because once you have made the money to pay your bills you quit. On the same note, once the deficit has been reduced taxation can be eased. This is the middle-class American way of making it work.

    August 8, 2011 at 7:21 pm | Report abuse |
  5. Jack in Florida

    Me thinks there is a teabagger at Standard and Poor's!! I point the finger squarely at the Republican party that are being held hostage by the Tea Party. They made the Debt Ceiling a political issue, and look at what happened!! If the Democrats were willing to compromise on the cuts to social services and medicare/medicaid etc, then the Republicans needed to compromising on repealing the Bush tax cuts. The party of no should be ashamed of their partisan politics and have some balls to stand up to the Tea baggers!!!!!

    August 8, 2011 at 7:22 pm | Report abuse |
    • RandyM

      Revenues were on the table. CNN has it on video. Obama would not cut tax credits (eitc). That is when the revenues were pulled. Obama has known since at least April and he knew what he needed. Obama does not want to face the tough issues and in fact neither do the Senate Republicans. They want to kick the can down the road one more time. The tea party made an issue of it but when the Senate Rep. bolted they had no shot and settled for this terrible deal. SP told them they needed $400 billion per year which is light. They should have said 1 trillion. The next highest deficit outside of Obama is less than $500 billion. Unfortunately, the deficit spending was not the issue it was the extreme amount of deficit spending that was the problem. US current spending is 40% financed with bonds. We currently spend about $25 billion per month on interest. We are out of control.

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

    Well, we can't believe our congressmen/women, banks, stock market, news media–what else is new! Ego and selfishness are all that seems to matter! What do I think? I'd like to move away-right now The USA is embarassing!

    Get the rich and the corporations to pay their fair share and Cut the defense department by 75% more outrageously priced outdated weapons, no more wars, and overseas bases. That our to take care of the debts!

    August 8, 2011 at 7:25 pm | Report abuse |
    • RandyM

      That is an overly simplistic approach and would leave the US vulnerable and can you even imagine what oil would be if we could not protect Saudi Arabia and Kuwait form Al Queda and Iran?

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

    We are broke, plain and simple and have been for decades. We have been paying the FED interest on a loan we received long ago and have probably paid the balance many times over. This is a warning from them to not ever make it look as though we may become independent of their blood sucking again. Zeitgeist (the movement) is a good way to turn from a for profit society to a good for all society. Before you leap from that building, check it out

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

    I think sometimes you have to lose, to win. For a very long time, I think Government, politicians have this idea in their head that the U.S. can do anything, it's too big to fail. There are so many revolving doors when it comes to government officials, everyone is following their own agenda.. and it has nothing to do with the citizens. States, have gone broke.. so deep in debt that they will never see the lght of day. Banking and big corpoations run the country.. and have enslaved the population. Not that the populatin didnt have a hand in this as well. Credit cards? ... choosing to live way beyond one's means.. we have spent ourselves into obliviion. This .. what is going on right now.. I think in the long run way, way down the road.. it will have been the right decision. How could S&P in good faith .. have not lowered the rating ? Those in government, act like estranged spouses... completely hateful to each other and cant sit down like upstanding leaders.. and hash this out. Perhaps, this is the first step in the rigth direction. Painful, although it might be.. but the right direction.

    August 8, 2011 at 7:29 pm | Report abuse |
  9. Bill M

    The S&P downgrading was just political payback for the recent Government report that blamed a lot of the financial system meltdown on the easy ratings that the S&Ps of the world were giving for a number of years. I'd say ignore the S&P rating system; no matter what rating we get, our economy is still the strongest in the world, period.

    August 8, 2011 at 7:29 pm | Report abuse |
  10. Dennis

    II would have done the same thing as S & P had it been my decision. How many of us can continue to spend more money than we're bringing in? It's about time th egovernment faces reality.

    August 8, 2011 at 7:31 pm | Report abuse |
  11. Dleigh

    It's an unfortunate rating, but one that has been coming for a long time. It certainly isn't a surprise to the Government that they are trillions of dollars in debt, can't pay back what they owe, and can't sustain their own economy, or the people.
    They knew this day would come, and most certainly did not have any real answers for the problem, and so it is what it is. They need to take accountability, and figure out how to solve their self-created disaster, without making the people suffer along with them for their mistakes. Perhaps, they will never be able to solve it, but bring it back to a much more manageable state, however, in that will take many years to come to.
    The financial ramifications have yet to begin, to fully understand that this isn't a blame game (it won't help), but more of a sustain game.

    August 8, 2011 at 7:31 pm | Report abuse |
  12. Gary

    There's enough blame to go around for everyone, Congress, several administrations, both Democratic and Republican, the banking industry, Wall Street, and the American People. If you want to blame someone, take a quick look in the mirror. With Authority comes Responsibility, and if you've voted in the last 30 years or so, you probably are part of the problem. Since we allowed our elected representatives to put us in this position, WE the voter must be at fault. We elected a group of individuals to look after out best interest, and when they did not, we continued to re-elect them. Even when we did not re-elect them, the people who replaced them became part of the problem. Now, we've gotten to a point that Standards and Poors finally decided to call it like it is, and everyone gets upset? Please, get your head out of the sand and take a look around. No one seems to be screaming at Moody's, even though they've given the credit rating a 'Negative Outlook', and for the same reason as S&P lowered the rating. Too little, too late, and too much bickering.

    We now have approximately 16 months before the next Administration is seated, whether it's President Obama, or someone else. We have about that long for much of Congress, as well. So, can you, as an American Voter, make an intelligent, researched decision on whom to place in Office in November of next year, or are you going to be the same old 'follow the herd' cow who can not, or will not, think on your own. Supporting your party used to be okay, but when the parties are so polarized as to rip the country apart, it's time for the people that put those parties in place to start thinking for themselves, instead of what their party is telling them.

    August 8, 2011 at 7:32 pm | Report abuse |
  13. Dr. Bombay

    The first line in this article, "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..." should be changed to "The audacity of the GOP to even subject raising the debt ceiling to political debate sparked a firestorm..."

    August 8, 2011 at 7:34 pm | Report abuse |
  14. Ph.D. from M.I.T.

    While there may well be math errors in the S&P's analysis (I don't know), I believe their political analysis is correct. As long as the Tea Baggers specifically, and most Republicans, continue on their delusion of not raising revenue our country is in peril. We have the lowest tax rates since WWII, and yet they continue to say taxes are too high. We had constant job loss during the second Bush term and yet they continue to say tax cuts will create jobs. I guess it is no wonder these people feel free to ignore facts when they deny evolution and global warming. I believe in a two party system, but when one party decides to ignore facts – that party needs to be put out of power to have them wake up and smell the coffee of reality.

    August 8, 2011 at 7:35 pm | Report abuse |
    • RandyM

      Ok PHD dude, let me have a crack at you.

      It is not political analysis, (are you drinking the kool-aid too) It is financial and that is what SP is supposed to do. Moody's wanted to downgrade but either chickened out or just did not want to be the bad guy. They will downgrade on the next budget deal if deficit spending is not cut drastically. The deficit spending is mind boggling. $1.5 trillion for 3 consecutive years. Bush's average deficits was about $300 to $400 billion or less. And us conservatives thought that was too much.

      Revenues were on the table but Obama would not agree cut tax credits. So the revenues were pulled. Obama wanted an election issue on SS cuts. He thought he could dodge the downgrade. he had good reason because Moody's discussed it then they kicked the can down the road. Now the issues is not SS cuts but physical policy. Obama and Reid lost this one. The Harvard dude must have skipped the class on the perils of deficit spending. Maybe he can take that class at MIT via the internet.

      What is wrong with taxes being at pre-WWII levels. There was no income tax until 1913. You see I can throw out useless facts too. I don't know if you are really an MIT graduate PHD or what. But even smart people do and say stupid things when they get emotional. This is not an emotional issue it is factual. The concept is very simple in fact a high school drop out understands that too much debt makes your finances tougher. That is all SP said. "US your finances are in a tough situation right now and you need to do change your habits." Now will you listen to sound advice or not. If you want to raise taxes then so be it, but in general the government spends inefficiently and usually businesses spend their money more effectively.

      August 8, 2011 at 8:35 pm | Report abuse |
  15. Guy from NM

    Not that S&P is anymore trustworthy than the politicians of this country. But I think the US needs a slap in the face from time to time to bring it back to earth.

    August 8, 2011 at 7:36 pm | Report abuse |
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