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. Allen N Wollscheidt

    It needs to be definitively shown that this was or was NOT a deliberately staged PAID political manuever - that S&P was not "IN" on it. . Personally, I think that it WAS ! ! !

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

      Why? Just because it makes your guy look bad does not mean it was a political maneuver. Don't drink think kool-aid, don't buy into conspiracy theories, don't believe ghost hunters is real and by the way professional wrestling is also faked. Their I think your world is thoroughly crushed now please deal in reality and facts.

      August 8, 2011 at 9:03 pm | Report abuse |
  2. Public Enemy Number 2

    Remove the S&P's ability to perform credit ratings. Imprison for life those at S&P who downgraded the US because of A.) their fuzzy math and B.) their AAA rating of credit default swaps that led to the 2008 recession. Repeal the Bush Tax Cuts. End the wars.

    So, now that I've solved our problems, how much money are you gonna give me?

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

      Holy Cow do you represent all of the ignorant democrats or are you special....

      You just argued that since S&P DIDN'T get the prior mortgage rating right they should let missing stated goals slide!

      How about a company that states expectations which are NOT met might do what they say! Cut $4T or go to AA+

      I'm sure that concept of doing what you say is difficult for democrats to understand...

      If I ran my company like we (Republicans AND Democrats) run our country NO bank would give me $1....

      August 8, 2011 at 9:08 pm | Report abuse |
    • OccupationG

      Government is not a company, sooner you foolish GOP realize this the better of your country will be.

      August 8, 2011 at 9:10 pm | Report abuse |
    • KingofRatings

      S&P gave valid rating in 2008 also..That was banks issue giving more is not an S&P's problem .

      August 8, 2011 at 9:21 pm | Report abuse |
    • RandyM

      To OccupationG, I think we all know that, the point is that you still have to be on top of your game, whatever that game is and you have to know what you are doing and where you are going. We do not have an administration that has a clue about how to run a country. It has an agenda but that is quite different from a plan to run a country.

      Business go out of business if they are a poor company. Governments just raise taxes and hire more people or worse yet they give money to people for votes.(yes I mean SS and welfare) The old folks want a 25 year vacation with free medical and the welfare class just wants to smoke dope and drink beer. They sure as hell don't want to get a skill or show up for work. I know this firsthand as it is my business to prepare taxes so I see them all. And yes most of the EITC is wasted on TV's, drugs and clothes they cannot afford. At least half of all EITC is wasted and most of it is likely fraudulent through unreported income, unmarried couples separating there income and splitting the child deductions so that they max out and can get as much as $5000 each in a tax refund and they did not pay any taxes into the system. Its worse than you think and the US government is in on it. They want these people to get the money and vote for the democrats. I promise everything I write is true based on my own eyewitness testimony.

      It is my theory, that the government cannot police itself because their jobs depend on SS and Welfare customers. I think that they basically grow their business of giving money away and then they need more people to administer the work so then they get a promotion to manage the increased business. I can't prove this but I' fairly certain that this or something similar like this takes place. (I admit that this last paragraph is pure speculation and I cannot prove it. So for now it is just a theory) If anyone has any evidence, or if you work in such an environment then please post and clear the air. But this is why us conservatives don't like big government.

      August 8, 2011 at 9:38 pm | Report abuse |
  3. Michael Wagner

    CNN said "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." In fact this blogs result seems to contradict this. Most people appear to recognize that the downgrade was warranted. They are mostly willing to calmly accept this as past, and want to look to the future. Maybe CNN and others should do the same and attempt to cover rational attempts to move forward rather than aiming to focus on exaggerated emotional responses, even the president's.

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

    You can lay this in the lap of the republican tea baggers. The reason for the downgeade is because the tea baggers were trying to prevent the ceiling from being increased. The tea baggers have done horrific damage to the economy because of their BS. Higer interest, thank a tea bagger.

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

      you can lay this at the hands of the progressives of both is intentional to establish a single don't really think that a delay in raising the debt celing caused a downgrade do you.liars and fools will both say that.

      August 8, 2011 at 9:07 pm | Report abuse |
    • Bdog

      S & P has been warning for several years now of a possible downgrade because of our debt which was run up by both Democrats and Republicans, however the democrats response the last 4 years has been to run up even more huge levels of debt. Obama along with this whole Liberal experiment has been a complete failure. All they have done the past 4+ years is point fingers, they have no answers!

      August 8, 2011 at 9:15 pm | Report abuse |
  5. Dave

    I love you America. You're pulling yourself apart and you think Gene Simons Family Jewels is worth watching. RIP USA

    August 8, 2011 at 8:58 pm | Report abuse |
  6. Scott

    Thanks WASHINGTON...both parties are equally to blame for this. Their continued partisan bickering will only continue to drag this country to third-world status. Message to WASHINGTON: No easy fix for this…time to roll up your sleeves and do what we elected you to do, not what your special interest bosses want you to do. Save the country instead of saving your campaign contributions.

    August 8, 2011 at 8:59 pm | Report abuse |
  7. inisheer

    Hey hey children – none or your outrage or your stupid political parties matter. Both Obama and Bush and all their friends have sold the country up the river. S&P has a group of clients to protect and they're simply doing their job. How can they not warn people against investing in US debt when they see our government coming within 12 hours of a default. The problem is everyone wants free medical care and retirement benefits, but nobody wants to pay for it. The enemy is us.

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

      I pretty much agree with you but we did not come close to default. Default implies we cannot or will not pay the interest payments. We only needed 25 billion to pay the interest and on 8/2 the US had over 70 bilion in cash. We would have had a balanced budget if the deal had not gone through and if we had stuck it out for a year then one year from now we would be in a much better place. Sure as hell someone would have lost their job and we would have cut something. But we would be more sound financially and may have even earned back the the AAA rating.

      August 8, 2011 at 9:46 pm | Report abuse |
  8. DanW

    If the downgrade finally breaks Congress out of its dreamy posturing mode and onto the business of fixing our economic problems, to the extent it can, then I say great!

    August 8, 2011 at 9:01 pm | Report abuse |
  9. tenorlord

    This isn't Obama's plan. The GOP and TEA party have obstructed anything Obama might have wanted to do!! His entire administration has had to be devoted to damage control from Republican policies. The TEA party is driving us off a cliff!

    August 8, 2011 at 9:02 pm | Report abuse |
    • redsled

      obama likes this destruction.all progressives least the high and mighty.

      August 8, 2011 at 9:13 pm | Report abuse |
    • RandyM

      Obama did not think he would get the downgrade. He was hoping to position the next election cycle on SS cuts. But he miscalculated and the election will be about fiscal restraint. He is now certain to lose and he won the battle with the Tea Party. Most of the Tea Party candidates did not vote for the bill. This was a Democratic bill all the way. Obama took revenues off the table because Boehner would not put them on the table until Obama put tax credits up. When Obama refused then Boehner had no choice but to pull revenues. In fact, it was Obama who refused to compromise as he really wanted an election issue that he thought he could win on.

      August 8, 2011 at 10:00 pm | Report abuse |
  10. Dave

    I honestly think Obama and the Dems care about the USA. I think the Reps and Teabags are blood suckers. And they are sucking blood now.

    August 8, 2011 at 9:03 pm | Report abuse |
    • RandyM

      Obama wants to raise taxes without cutting spending. To me that is bloodsucking. As my money is the life blood of my home and my Independence. Taxes suck money away from what I want to spend it on. I want to decide how to spend my money and let Obama spend your money.

      August 8, 2011 at 9:49 pm | Report abuse |
  11. bookgirl

    Boycott McGraw-Hill Companies, owner of S&P.

    August 8, 2011 at 9:07 pm | Report abuse |
    • Da King

      That'll do a lot of good.

      August 8, 2011 at 9:09 pm | Report abuse |
    • KingofRatings

      looks like you are the most frustrated moron by S&P..ha ha...S&P doing right things..Dont go behind politicians ..they will make u as fool..they never answer your questions directly...

      August 8, 2011 at 9:23 pm | Report abuse |
  12. Da King

    Thanks Mr. Boehner. When you are done blaming everyone else for not playing nice, it's ok to cry.

    August 8, 2011 at 9:08 pm | Report abuse |
    • RandyM

      It was Obama that did not want to compromise. Obama could have increased revenues if he had agreed to cut tax credits. He would not so Boehner had to play the only hand he had, no revenue. CNN has the video of Boehner saying he offered revenues but Obama would not play. This was a Democratic bill all the way it was Reids bill and he waited till the R had no more time so he could push it through. Obama new the criteria that SP wanted to see to keep the AAA rating. The bill needed at least $400 billion per year in cuts. This would have left the annual deficit at still over 1.1 trillion. No buddy you are way wrong. The talking heads don't understand financial stuff and we all know they lean left anyway.

      August 8, 2011 at 10:07 pm | Report abuse |
  13. Andrew C.

    Is this article of joke? Asking the general public what their stand is on S&P's downgrade? That's like asking a farmer if he thinks the findings of a nuclear physicist are right. S&P is one of the most respected, intelligent INDEPENDENT organizations in the financial world. I don't know how joe schmo politician or 99.9% of the people reading this article could possibly argue what they say. This is their job and expertise to sit there and crunch numbers and compile data from thousands of sources. What research have you done on your stance???

    August 8, 2011 at 9:08 pm | Report abuse |
    • KingofRatings

      You are 200% correct..These fellows simply comment based on their haters. Good example asking farmers about nuclear ..S&P Rocks...Politicians are stupid ,they know only politics....People dont have rights to comment without knowing anything abt ratings..

      August 8, 2011 at 9:25 pm | Report abuse |
  14. OccupationG

    Democrats purpose compromise, GOP purpose complete capitulation on policies that led you to this point. What the hell are the Democrats suppose to do, let the GOP destroy the economy?

    August 8, 2011 at 9:09 pm | Report abuse |
  15. redsled

    the idea that the tea party was the cause of the downgrade is a lie.yet,some here will try to make the insane claim.liars or fools?

    August 8, 2011 at 9:11 pm | Report abuse |
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