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. Al

    The Tea Party is for the rich... the Republicans only fight to protect tax cuts for the rich. The Tea Party Republicans won't help the middle class. If the rich paid just a little more, the debt would go down. The rich aren't creating jobs anyway. The tea party Republicans are just destroying them. When they cut government spending not only government workers lose their jobs, but also the businesses that contract with the government. The Republicans are destroying jobs at the worst time possible. They just want to blame it all on Obama and not do anything, except of course make sure the rich don't have to sacrifice a dime.

    August 8, 2011 at 8:20 pm | Report abuse |
  2. nodynasty

    Where do I stand on S&P downgrade? – in deep doodoo; how about yourself?

    August 8, 2011 at 8:24 pm | Report abuse |
  3. ChicagoRich

    Well, if I consistently spent more than I took in, and then argued about whether I should pay for what I borrowed, making my creditors a bit nervous, would it be any surprise if I didn't get a stellar credit rating? Government should not specifically worry about what the credit rating is, it should just concentrate on the same thing it should have been concentrating on before, which is getting our own house in order. This is the result of decades of inefficient governance.

    August 8, 2011 at 8:28 pm | Report abuse |
  4. Ron Paul 2012

    Ron Paul was right.
    Restore America Now!
    Ron Paul 2012

    August 8, 2011 at 8:28 pm | Report abuse |
  5. Jim

    Oh yea. Let's all be silly enough to pretend (I hope it's pretending) the S&P, Wall Street, the Banks and our Government aren't sleeping together. How they must laugh at our post while safe in their gated communities toasting one another with winks and nods as we fight among ourselves. It's a class war People. Get with the program.

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

    No one was complaining about S&P when they were giving us AAA. In fact, everyone thought they were absolutely spot-on. Now... well, we *can't* be messing up, it must be them!

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

    I think all they did was confirm what every financial person already knows. The United States is not in "great" shape financially speaking. That being said, they are still in very good shape and investment quality. The interesting thing to see will be whether interest rates increase for investing in the American dollar like should happen whenever a riskier investment is used. It wouldn't be the first time that an increase in interest rates helped pull the country out of recession...

    August 8, 2011 at 8:31 pm | Report abuse |
    • IBON4IT

      @Jim – "It wouldn't be the first time that an increase in interest rates helped pull the country out of recession...
      And when did that happen?
      The only thing higher interest rates are going to do is expand the housing collapse, depress new housing sales, lower housing prices/equity, CUT LOTS of JOBS, depress new hiring and make it harder and more expensive to borrow for any reason. Oh, but maybe Grandma will get an extra 1/2% on her CD and, oh yeah, the Tea Terrorists are happy as pigs in you-know-what with themselves.

      August 8, 2011 at 8:40 pm | Report abuse |
  8. John Prock

    They downgraded Buffet's company, too, and he is a Democrat, so they are Tea pary repub-nazis.

    August 8, 2011 at 8:32 pm | Report abuse |
  9. a disgrace

    the downgrade was fair and overdue it took a lot of courage to do the right thing.obama's disgraceful failure to do the job he was elected for is where the blame belongs and clearly he must be removed from office now!

    August 8, 2011 at 8:33 pm | Report abuse |
    • Severinus

      The Republicans have spent almost three years now filibustering everything the Democrats propose in the Senate, and have spent the better part of a year digging in their feet in the house. A small minority of Tea Party radicals took a routine matter and turned it into an artificial crisis, and you have the gall to blame Obama?

      August 8, 2011 at 8:42 pm | Report abuse |
  10. Dennis Lykins

    how do i feel about S&P actions? well .... it seems they were willing to accept money to rate "JUNK" as AAA several years ago, It is my opinion that history repeats itself, somehow, someway they have figured out how to get money from someone that wanted to see the credit of the UNITED STATES downgraded. Bottom line, who cares about S&P. If you work at S&P and were part of this decision process then you should be subject to the full faith and credit of the IRS and a comprehensive tax audit.

    August 8, 2011 at 8:34 pm | Report abuse |
  11. im4eversmart

    Time for the leader to lead. After all he ran for the position, now do the work instead of complaining about the previous employee all the time. What a joke, we really need to overhaul Government
    !!! It is broken and needs fixing !!!!!!!

    August 8, 2011 at 8:35 pm | Report abuse |
  12. IBON4IT

    S&P is schizofrenic. They can't decide if they're ratings are conservative or off the charts whacky. Whatever. All I can say is a big sarcastic THANKS A LOT to the dizzy Michelle Bachmann and her Tea Terrorists. They said "so what" to warnings that the U.S. credit rating would be downgraded. They claimed nothing would happen. I'm pretty sure a 1K Dow point drop in 2 days is going to change that "conversation". What a bunch of loony know-nothings!

    August 8, 2011 at 8:35 pm | Report abuse |
  13. mary jo doyle

    Standard and Poor did exactly what it is in business to do, adjust credit rating based on the budget/deficit. Since Washington's duly elected did nothing to bring about a constructive resolving of the deficit, why is anyone surprised at the Credit downgrade. It was no surprise to anyone who follows how deficits play out, nor should it have been.... shame on the House and Senate, they are wholly responsible for the downgrade.

    August 8, 2011 at 8:37 pm | Report abuse |
    • Severinus

      Except that they themselves admit it had nothing to do with the budget/deficit and everything to do with the political brinksmanship that nearly caused a default. Now let's see, which party was it that took this normally routine procedure and turned it into a circus?

      August 8, 2011 at 8:46 pm | Report abuse |
  14. Michael Wagner

    Though I am not am economics expert, I think that the downgrade was not only expected but warranted. Several other nations including Great Briton have made drastic cuts in spending to balance their national budget, while the US has made only moderate cuts that do not fully rectify the financial situation. I think that adopting a balanced budget amendment and significant policy change such as set forth in the "Penny Plan" or "Ryan Plan" would reverse this downgrade.

    August 8, 2011 at 8:40 pm | Report abuse |
  15. Janice from Texas

    It doesn't matter what I think . . . this is more armchair quarterbacking.

    What are we going to do about it? It seems the market has told us what we're doing, and how we're governing isn't working. We need more stimulative measures that deal with employment in the short run . . . and to deal with debt AFTER we get the economy moving better.

    What's done is done.

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