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.

CNNMoney.com: Did S&P get it right? | Time.com: A political miscalculation

As the market reacts to the downgrade status, CNN.com 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 CNN.com and CNNMoney.com 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&P....you 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. cv707

    You would think educated people would know you can,t borrow your way out of debt.

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

      i think they do know just that.think the worst for a minute.

      August 8, 2011 at 9:15 pm | Report abuse |
  2. AMM

    it was only a matter of time.....s$it just got real

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

    This downgrade was long overdue.

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

      You are too kind. It never should have been allowed to happen! Vote the House leaders out.

      August 8, 2011 at 9:17 pm | Report abuse |
    • jdoe

      Absolutely

      August 8, 2011 at 9:27 pm | Report abuse |
    • Dano

      If the Tea Party had their way we would have also defaulted. I can't even imaging being so foolish as to wan that to happen. Vote the Republicans out of the House, they don't deserve to say they server!

      August 8, 2011 at 9:35 pm | Report abuse |
  4. John Kaufman, Oceanside, CA

    Congress and the White house have no financial plan to right the sinking ship of State: FACT! Most members of Congress have no financial education and no understanding of GLOBAL economics today. FACT! The White House has no business sense, has never run a business and is clueless as to clear financial solutions to excessive spending. FACT! Washington is caught up in a blotted govt, partician politics, and excessive over spending on stupid items. We the people are at their mercy which is like a lamb being lead to the slaugher house. Nothing will change for American citizens are fools in putting up with the folly! This not what the founding fathers wanted and all those fathers would curse those in Washington today, especially George W. Shame on all of you in Congress!

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

      FACT: 99% of the problems today are linked DIRECTLY to Republican policies of 40+ years.
      FACT: Capitalism does not work in a vacuum without proper regulation.
      FACT: If the Republicans had agreed to the 4 trillion Democrat plan, our credit rating wouldn't have been decreased.
      FACT: Our tax rates are at the lowest level in the past 50 years today, which is where part of our deficit problem is coming from.
      FACT: Our government is spending less than 75% of what they did in the 1970's, adjusted for inflation and wars taken out. That shows that we are NOT spending too much.

      Wake up, John... you are living in a dream world.

      August 8, 2011 at 9:32 pm | Report abuse |
  5. spudmick

    Republican economics are outdated; employees are just as important as employers. Brains not brawn are what is required for creditable government.

    August 8, 2011 at 9:20 pm | Report abuse |
    • Christopher

      With all due respect, there are some people who are just not cut out for 'education' and most of our people in Congress (at least on the Democrat side) are very intelligent..... they just have nitwits on the conservative side of the table who are preventing them from fixing the problems in America today, which those solutions lean to the LIBERAL side of the equation.

      August 8, 2011 at 9:33 pm | Report abuse |
  6. Randoms

    When governments can't reach bipartisan solutions without trying to tear each other to shreds in spite, it shows a clear lack of fiscal leadership. These politicians are not looking after joe citizen's well-being, they are looking to be/stay the majority for their own careers. Something needed to happen, but the sheer antics drove panic IMHO

    August 8, 2011 at 9:20 pm | Report abuse |
  7. Mike Brooks

    We deserve it....and worse. We permitted our politician's and business leaders to outsource more than 30 million jobs, dismantle most of our manufacturing and technology capacity and ship them off to China for the stupid promise of "lower prices". Well, the prices haven't gone down and, with the jobs gone, no one can afford much of anything. There is a lot worse to come unless this is reversed. In spite of the blathering about creating new jobs, that is a fantasy. We either get the jobs back that we outsourced or we go under. Now is the time for 50% trade tariffs and duties on every manufactured import, on imported services, coupled with duties on anything imported into our consumer base. No more dropped shipped Apples or iPhone, no more cheap Dells made in India, or pharmaceuticals made in India, shirts and shoes from Vietnam. We impose high tariffs and we produce those things HERE using US labor. The alternative is national suicide.

    August 8, 2011 at 9:21 pm | Report abuse |
  8. smokinbluebear

    london is burning...new york is crashing...new yakkers please get out yer hd cameras...
    and catch the traders and bankers as they take a two second plunge....ending in a thud and a crack....their souls descending to a club where hitler and stalin work the vip....no more sushi for me...ha ha ho ho he he...

    August 8, 2011 at 9:21 pm | Report abuse |
  9. ferreira

    if s&p thinks the usa deserved to be downgraded then they should do it to all aaa countries.the usa is the only country that allows you to see democracy at work.

    August 8, 2011 at 9:21 pm | Report abuse |
  10. Eirc in TX

    Yes, S&P got it right. The message from S&P in their report is very clear:
    1. Continued U.S. deficit spending at current levels is NOT sustainable (without a default on its debt obligations at some point in the future).
    2. New legislation passed last week does not resolve the problem, it only delays it.
    3. U.S. Federal fiscal budget process is broken, and it appears that Congress is incapable of fixing it.
    4. If this continues we will downgrade again in the coming months.

    August 8, 2011 at 9:22 pm | Report abuse |
  11. Cke Mong

    President Downgrade. That is one of the kindest remarks I heard the Leader of America called while walking past the unemployment line today.on my way to work as a janitor at a company that was downsized to fit into what the Soros/Obama Team would think about the Bank of England, the United States Governmentm Israel, and ROMA.

    August 8, 2011 at 9:25 pm | Report abuse |
  12. navig8r

    Obama and his fellow "community organizers" (acorn) played a big part in causing the housing meltdown. Since taking office it appears he has been trying to bring this country and its people down to the least common denominator. Just how low remains to be seen.

    August 8, 2011 at 9:25 pm | Report abuse |
  13. Mike

    I am so FRICKING tired of the DEM's saying Tax the rich......... Come on give me one other plan you have. Getting rid of the Freeloaders in this country would be a start.. Cutting defense spending, After being in the military I know there can be some cuts, How about revamping the pay our congress gets. There are some other ideas...besides taxing the rich. I am no way close to being rich, I'm just tired of the one and ONLY plan the Dems have.

    August 8, 2011 at 9:27 pm | Report abuse |
  14. rvd

    I have written to state senator and the house speaker. Their replies are a joke. They do not address the questions raised by the people. They try to give political speech. Both of them voted for Bush tax cuts and two wars. That is the reason why we are in such a sad shape. We had budget surplus in 2001. Republicans should not open their big mouths ans talk about fiscal responsibility. They stink. Now they want to hurt the middle class through cuts in programs for middle class. They still want to protect rich business people who exported millions of job overseas. There is no limit to how cruel these people can be. People must start picketing offices of these people and the congress as well. This action may get the point across.

    August 8, 2011 at 9:30 pm | Report abuse |
  15. Robert Johnson

    You can rant all you want about whether or not S&P is competent, but that's just ignoring the real issue. We've spent more money than we have for far too long, and there is no credible plan in place, or even in sight, to deal with it. This reality alert is long overdue. Wake up Mr. Krugman and all the rest. Deficits do matter.

    August 8, 2011 at 9:30 pm | Report abuse |
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