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."

Post by:
Filed under: Business • Economy • Finance
soundoff (1,062 Responses)
  1. Charles

    S & P downgrading America's credit rating is like Casey Anthony telling someone they are a bad parent. It's funny how every savy investor across the globe flocks to buy US Treasury bonds when the market goes belly up. What S & P just did to our country was wrong on so many levels. They have ZERO credibility. I hope they pay through the nose.

    August 8, 2011 at 7:36 pm | Report abuse |
  2. Mike A

    Our government deserves it, they were aware of S&P's warning and did precious little to prevent the situation until the absolute last minute, and then in a half hearted and minimal effort. Actions have consequences, even though Washington doesn't believe so.

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

    I think S&P was being generous and Moody's must be bought off by Geithner. I wanted to believe in the "change" but the Obama Administration is quickly gaining on the Carter Administration as one of the most inept, over it's head governments.

    Private sector wise – if a company is overbloated with overpaid unionized labor and a useless, out of touch management team, spends more than it takes in and the value of the services/products they provide is often needed or wanted, this rates them AAA? or even +AA?

    I feel safer investing in short-term subprime paper than anything the government (US and California) are trying to ponzi.

    Geithner is worse than Madoff – except this Ponzi scheme is taking a country down.

    August 8, 2011 at 7:45 pm | Report abuse |
  4. Steve Jarvis

    Childish partisan bickering and obstructionism by people who are so well off as to be completely out of touch with the people that allegedly represent. If you think ANY member of Congress feels our pain ... right. They knew this would happen and they did it ANYWAY just for the sake of the 2012 election. It's real easy to stand on principle when your ass isn't on the line. Congress was gambling with house money. Once again Congress has placed partisanship over doing what is in the best interests of America. And, on a personal note, THANK YOU congress for taking my retirement account back to the level it was the last time the economy crashed, JUST as I made back all my losses.

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

      I am replying to Steve because of one statement.I agree 150% with your posting.Although a retirement would be nice, and I am almost 40 years old, the 9-11-01 terror attacks have put the American dream to rest for most of us in this age and under because of the extreme amount of money that has been spent every day since then.I support our military spending and would rather lose a little as long as our children can grow up somewhere safe.My father made the same comment today.This is sad but it is a reality for us younger people that the older generations are greedy and it seems that way all over in Washington.This has been a tough 10 years for the US, but it will all work out.Just remember that every day, millions are spent on the President just so he can have the absolute best and nothing less.To congress, dont pout if you dont get a new vacation home this year.Just remember that debt is protecting you and your children and grandchildren.

      August 8, 2011 at 8:00 pm | Report abuse |
  5. Armand

    It's time to complete the investigation into the financial meltdown a couple of years ago. This time pay special attention to everyone working at S&P. Let's put the in jail. Send them to a regular federal jail. How can they fail the country after stealing from us?

    August 8, 2011 at 7:46 pm | Report abuse |
    • chatmandu002

      Armand, Is that the best you can do. Put everyone in jail? Almost all of the TARP money was paid back. It wasn't S&P fault the US has been spending more than it makes for so many decades.

      August 8, 2011 at 7:51 pm | Report abuse |
    • Stephanie

      So governments shouldn't be held to the same standards of businesses and individuals? What do you think your credit rating would be if it became questionable as to whether or not you could pay your bills? We get credits hits every time someone even looks at our credit score. The US is bankrupt. This country refuses to tax the people and corporations that have the means to pay. They are given tax breaks, subsidies, loopholes, offshore banking, you name it. The regular folks like you and I are losing our jobs and the new jobs being created pay less than the ones we lost. The debt, mathematically speaking, is IMPOSSIBLE to ever pay off. The greater question is why S&P didn't downgrade us sooner.

      August 8, 2011 at 8:11 pm | Report abuse |
  6. Spirit Of Truth

    Democrats and Republicans are equally worthless.

    August 8, 2011 at 7:50 pm | Report abuse |
  7. Spirit Of Truth

    vote them all out... F them all... and F all of you that support either one of the parties

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

    I am so sick of Washington. Lets help every country out there that needs aid, and put us horribly in debt when we have our own problems here. Would you pay your neighbor's mortgage for them and let your house go into foreclosure just to keep theirs from it? Then when we get in a financial bind, all the bureaucrats blame everyone but themselves for passing these bills in the first place. Cuz the bottom line is all about how much money are they going to make? More than you or i in our lifetime. Which committee can they become a member of to get kickbacks from the CEO's of the companies that those committees affect. I wish we as americans could borrow money to buy stuff, based on this $ right here we placed in an IRA will earn enough interest over the next 10 years to pay for it, but at least we can have this now. And after doing that a few thousand times, what next? We have no money and a skyrocketing debt, so we are going to modify the credit scale so our credit isn't that bad. Just like raising the blood-alcohol law to solve the drunk driving problem. Did it fix anything? No! We still are in debt, and have out of control spending. And when Obama is NOT re-elected, because he won't be....who will get to fix this mess? Rediculous

    August 8, 2011 at 7:53 pm | Report abuse |
  9. Andy

    We deserve it. Congress has become completely inept. It's time to clean house. We need to make a shift toward 3rd party and moderate candidates or nothing will ever get fixed.

    August 8, 2011 at 7:53 pm | Report abuse |
  10. William

    As a registered Democrat who fiercely supported President Obama, it's time to realize the truth. Either we find a primary candidate who can inspire the Nation, or we face utter ruin in 2012. Obama has proven to be a complete failure.

    August 8, 2011 at 7:53 pm | Report abuse |
  11. tracysp2001

    I think S&P are a bunch of jerks who just want to screw with the markets to prove that they're relevant. And you know what, CNN? I think it was really sucky of you guys to post "breaking news" about the fall of the markets all day about a self-fulfilling prophecy!

    August 8, 2011 at 7:54 pm | Report abuse |
  12. iwatchu

    Being they had a hand in the 2008 financial downfall, ripoff, blatant theivary etc...and being that pretty much ALL of those key players are still in office/charge in one way or another....

    ....this WHOLE mess and the verbal snipers therein is just a bunch of guffaw kettle black calling...

    ...WE need to hire new people, by ballot or gun, it's time for a 'regime' change in this country.

    August 8, 2011 at 7:55 pm | Report abuse |
  13. Sarah

    II applaud S&P for not being bullied by the government... we got ourselves in this mess, we must deal with the consequences.

    August 8, 2011 at 7:55 pm | Report abuse |
    • Steve-0

      Don't you think maybe S&P and some very powerful people are manipulating this situation. The big money makes the market tank. They buy up all the cheap assets. It's like being at the craps table. Just when you're ahead, the guy walks up and rolls snake eyes.... and the house cleans the table.

      August 8, 2011 at 8:07 pm | Report abuse |
  14. DavefromNYC

    The politicians are constantly talking about cutting deficits and spending but why isn't anyone discussing or even proposing stopping the 4 to 5 wars that we are currently fighting. If we are serious about cutting the deficits and debt this would be a logical place to start.
    Its ironic that we are following the same path that the USSR followed in the last days of the empire as it could no longer afford the luxuries of maintaining a massive empire under the weight of tremendous debt and unsustainable spending. Comrades lets hope we do not end up standing in bread lines as we can no longer afford the bare necessities of life.

    August 8, 2011 at 7:55 pm | Report abuse |
  15. Billy Bob

    Everyone panics and sells. The rich buy up the cheap stock nag get richer. All part of the master plan.

    August 8, 2011 at 7:56 pm | Report abuse |
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45