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. truth over profits

    I think if the calculations prove that America is not managing its debts well (GDP/debt percentages), it should reflect in our credit rating. If we stay AAA without being worth it (our risk of default was definitely a possibility), the ratings are worthless anyway. As a country, we need to live within our means. Spending more than you have is irresponsible. I teach my children the meaning of money. Do I need to go to Capitol Hill for the same? If we don't have it, just printing more money sure doesn't fix it. It just cheapens the dollar for all of us, making everything more risky. Didn't we learn some lessons from the tech bubble, housing bubble, etc.? Wouldn't we all like to know the truth about our country's financial status instead of congressional spin about our budget?

    August 8, 2011 at 1:04 pm | Report abuse |
  2. K

    I would hope this downgrade would be a wake-up call to the government about responsibility. Apparently, these low-life politicians do not know how to balance a checkbook because they darned sure can't balance a budget and keep spending within the budget.

    August 8, 2011 at 1:04 pm | Report abuse |
  3. jefffbo

    Am not to crazy about the way we got here, by the dysfunctional government. But in a way this is a wake up call to them and if a downgrade is what we need to get these politicians serious about debt reduction then all the better. Also, a downgrade will cause additional stock market trading eventually, and there might just be enough enthusiasm to create a couple of jobs from it.

    August 8, 2011 at 1:05 pm | Report abuse |
  4. HFM17

    We are (and have been) pouring money and lives into two absolutely useless wars, the major bad guys are toast, yet we are still there doing what?? We ship our good jobs overseas so corporate big shots can maintain their life styles, complete with jets and mansions, and we have a dysfunctional Congress who cannot wean themselves from the flood of corporate cash into their campaign chests....
    Yet we hear scant news about how much money is going down the two ratholes in Afghanistan and Iraq; how much of our own crumbing infrastructure could we have rebuilt with all that $$$?? Yet our politicians act surprised, promise a bunch of nothing while spending 85% of their waking moments running for reelection....we should dispense with congressional elections and just randomly choose names from the phone books in each state every 3 or 4 years, totally eliminate ALL compaign contributions and besiege our current collection of self important schmoes to live up to the terms the oath they allegedly took, and while they're at it, stop wasting time thinking of new ways to reward illegal aliens...hello Congress...??/ your responsibilities lie with the AMERICAN people....

    August 8, 2011 at 1:05 pm | Report abuse |
  5. SDnana

    I think the loss of the AAA rating is a true refection of the state of our economy. The question is – how much does it matter to the working class in America? I am two years from retirement and have just taken the 3rd major hit to my 401K. Do I have enough time to wait it out? Probably not. Still, I believe it will settle out over the next 6 months. I didn't say recover – I said Settle out. Settling out is what we have to settle for.

    August 8, 2011 at 1:05 pm | Report abuse |
  6. Margo

    I guess this country got what it deserved, house and senate members acting like children aquabbling on a playgound. Who knows what crazy stuff they will or will not come up with in the fall when more cuts are to be put on the table. I don't have confidence in this government to get anything done. No wonder the rating agencies are making these decisions. And then of course who does it hurt...the average, everyday american just trying to make ends meet. Not those "Hill" snobs...nothing in their life is in jeapardy, they are all protected while we are left hanging. Obama needs to get a back bone. His cheerleader ways aren't cutting it...I had big doubts about him during the campaign...I always told my children, don't listen to what people say, watch what they do...that tells the story and from my vantage point, he doesn't have a story...only words and dollar to the bankers who immediately converterd it into a big bonus for them and nothing to the people. That is where the stimulus should of went. At least the most common of us would of done something to better ourselves, our neighborhood and our local businesses. I am fed up. One more note...that tea party need to go...I mean AWAY, they are ruining people's lives by their mere existence.

    August 8, 2011 at 1:05 pm | Report abuse |
  7. john

    News in London: Cop shoots man, city erupts in flames as citizens fight for their rights.

    News in America: cop's beat to death disabled man, crowd holds candle light vigil protest.

    Egypt: citizens overthrow corrupt government, replace president.

    News in America: government downgraded, 401K wealth evaporates,stock market crashes, citizens do not react.

    Are Americans uninvolved apathetic lazy?

    August 8, 2011 at 1:06 pm | Report abuse |
  8. Dan Bednarik

    You are asking me? S&P let the data speak - US needs to get off its high horse and recognize the real problems in our system. Stop wasting billions of dollars in fabricated wars just for business interests (you don't see us fighting in Africa do you?). Best thing that could ever have happened to the USA.

    August 8, 2011 at 1:07 pm | Report abuse |
  9. Anna

    The congress is as best incompetent and the president made the wrong decision not using the 14th amendent. To put our country in this position is almost an administrative treason. All of these people and parties knew what was at stake here. Our country has been put in financial peril by the actions of those in Washington, both of the last two admininstrations. So finger pointing needs to stop and work to get us out of this mess needs to begin. JOBS should have been the TOP priority of the administration, not health care or anything else. The politization of this is NOT in the best interest of ANY AMERICANS or our country.

    August 8, 2011 at 1:08 pm | Report abuse |
  10. john

    Do Americans blame elected members of congress more than themselves to escape responsibility?

    Are Americans lazy uninvolved and apathetic?

    Is Rome burning ?

    August 8, 2011 at 1:08 pm | Report abuse |
  11. TL

    Who rates the S&P? Their organization is a total joke.

    August 8, 2011 at 1:09 pm | Report abuse |
  12. mike

    It is a good thing to be downgraded in a way. Now Washington has been formally put on notice that it needs to get it's fiscal act together and now. Not by whining voters, or by partisan accusers, but by a cold, uncaring credit rating system that does not care about politics, just the facts.

    Wake up Washington, the time has come to pay the piper.

    August 8, 2011 at 1:09 pm | Report abuse |
  13. Mike

    GOOD! This is what we get when congress, ( Dems and Reps) act only for their own interests; and our president who has NO backbone to blame for this. Everyone fights each other ONLY for their own political gain at the cost of the U.S. Congress works for the corporations, NOT the American people. Our president for stands for nothing and finger points every time there is a problem. GET RID OF EVERYONE AND START OVER, this current group of people don't have a clue.

    August 8, 2011 at 1:10 pm | Report abuse |
  14. matt

    John.: ofc i blame obama for some . but look what he got stuck with. when he showed up to that desk, he already had a monsterous steaming pile sitting there! the big thing here is that this will not and can not be fixed in a year or two or 3.

    the entire gov. has drained every bit of extra money this country ever stock piled through loop holes and extreme tax cuts for people in very high positions. either side!! a war that will never end nor be won. opec and the oil guru's. thats why we are downgraded!!!! the whole world has seen whats going on!!!

    August 8, 2011 at 1:10 pm | Report abuse |
  15. FactFeed

    S&P got it right – very right – and these whining spoiled brat cry-baby greedy Wall Street dolts better wake-up, smell the coffee and do what really needs to be done or another downgrade is in our future. Every undisciplined debtor who is irresponsibly borrowing their way through life makes the same whining complaints heard here – "Well golly gee, this isn't fair and I didn't deserve this and they were wrong to do what they did." That's exactly what Greece said and Italy said, and now we have to hear the same lame excuses from "the Wall Street Gang of Thugs" and liars who caused this meltdown to begin with?? S&P got it right. Now let's accept that reality and muster the gumption to do it right this time - which MUST include serious taxation changes as well as budget cuts. We can't stay in denial forever if we are to survive with some kind of 'quality of life.'

    August 8, 2011 at 1:11 pm | Report abuse |
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