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. Crewmember

    I don't blame S&P for the bad news. Its clear the GOP would have pointed to the credibility of S&P if it had NOT downgraded the credit rating as proof that what they did was correct. Now, once again, they have painted themselves into another corner. The fringe Tea Baggers and the GOP agenda to oppose anything and everything Obama proposes even if it is not good for the country is responsible for this disaster. They made sure we all knew who owns this.

    August 8, 2011 at 9:32 pm | Report abuse |
  2. Thomas

    We need a credibility rating for rating agencies. That way, they have incentive to be credible instead of political.

    August 8, 2011 at 9:32 pm | Report abuse |
    • mbaDad

      It was the right thing to do. To bad we did not have this honest about risk leading up to the housing melt down.

      August 8, 2011 at 10:00 pm | Report abuse |
    • Jay

      Deserved. If ti only serves as a wake up call for the electorate, the elected are useless, the prupose will be served.

      August 8, 2011 at 10:01 pm | Report abuse |
  3. Tom

    I don't see how anyone can argue with the downgrade.. However I also think that S&P could've handled this whole situation much better than they did... With the financial markets already taking big hits, to just make the announcement like that with no warning was a little irresponsible.. I mean, the debt ceiling was raised last Monday, and they had all week to prepare the public for this announcement. There could have been some warnings, to GRADUALLY let the world know a downgrade was likely before actually making the announcement.. Instead, they just turn the whole market upside down... And now we are hearing that there were "rumors" that some traders knew the downgrade was coming.. So, some lucky traders who had access to this information could've made a lot of money off of it, while the rest of us got slammed... EVERY person at S&P who knew about the downgrade before Friday evening should be the subject of a criminal investigation.
    Then to make matters worse, Monday when the market started to look like it was stabilizing, they go ahead and announce more downgrades... What is wrong with them? Are they TRYING to bring about a Great Depression?
    So basically while I do not disagree with the downgrade, I do think that S&P has lost all credibility as a responsible financial organization and basically think the world should now consider them a financial terrorist organization. In my mind, for the way they handled this downgrade, I do consider them to be terrorists.

    August 8, 2011 at 9:34 pm | Report abuse |
    • Cedar Hill Press

      I think you're mis-directing your fire and ire, buddy. The world trusted and believed in us just a few months ago in spite of balance sheet and cash flow problems. After the Repuplicans and Tea Partiers just plain idiotic self-indulgent paralysis of our political process and public airing of our laundry, they no longer do. Whether you or I agree with the S & P downgrade is beside,the point, immaterial and talking about it isn't going to solve our problems or reburnish our international reputation. So what is? Working together, getting rid of obstructionist elected politicians, extremists in the political process and sad to say, suck it up Americans, revising the tax code. Woe is us. For the thumpers out there, thump this: "A kingdom divided against itself will come to desolation." Lk 12:17. You can't beat a good quote wherever it comes from, even from the Horses Mouth.

      August 8, 2011 at 10:01 pm | Report abuse |
  4. truth

    it was necessary! congress and the white house monopolize the market! they believe they could crunch the numbers and ratings. they use inside political pressures. so many of these agencies refuse to do what they should do! these politicians need to wake up and smell the coffee!!! it's time we cut spending! cut all donations to other countries. it's time we make sure our children don't suffer because of pathetic spending sprees!

    August 8, 2011 at 9:36 pm | Report abuse |
    • Thomas

      If the US has become a greater credit risk, why is everyone rushing to buy up US debt? Why isn't anyone buying AAA rated countries' debt?

      August 8, 2011 at 9:43 pm | Report abuse |
  5. chris

    Well people, we had a really bad day on wall street. There was alot of selling. But there was alot of buying also.
    What was being bought you ask? Treasury Bills, U.S. Treasury Bills. What does that tell you?

    August 8, 2011 at 9:38 pm | Report abuse |
  6. Steve

    They should knock it down another two notches.

    August 8, 2011 at 9:39 pm | Report abuse |
  7. RepubliCONman

    Thanks to the Republicans we had 2 unpaid War's and tax breaks for the rich. This bankrupted the nation and when they had the one chance to do something about it, they saved the tax breaks for the rich and killed the working class poor and the unemployed. Thanks Republicans for destroying the nation. I am sure the rich will trickle down their richness to your pockets.

    August 8, 2011 at 9:40 pm | Report abuse |
    • Nan

      Totally agree!! First they wouldn't raise a clean debt ceiling bill (which was simply approval to pay our bills, not add more) and tied it to a budget fight. Then Obama offered 4.7 trillion $$ and the republicans walked away because they would not accept any plan that included revenues (taxes on the rich, closing tax loopholes that allow American Money and Jobs to go overseas). They held us hostage until the last minute and they were very vocal and proud of what they had done. They bragged about! Recall- John Boehner said he got 98% of what he wanted. Michelle Bachman came out loud and clear that she would not approve the deal to pay our bills. Now rating agencies decided to downgrade us because they simply watched the nonesense coming out of Congress and it made them nervous...Yet NOW the same clowns are blaming Obama after causing the mess. They really must think the American people are stupid...well, apparently, some are...but you really have to be DUMB to fall for their spin now. Thanks for the downgrade GOP. It's in your lap.

      August 8, 2011 at 9:49 pm | Report abuse |
    • o

      The Democrats raised the defecit 33% in 2 years. Need we say more???

      August 8, 2011 at 9:57 pm | Report abuse |
    • srichey

      @O The democrats were forced to raise the deficit 33% to clean up the mess of the last administration. Need we say more?

      August 8, 2011 at 10:05 pm | Report abuse |
  8. Dave L

    In my are a compltete idiot to even ask that question.

    August 8, 2011 at 9:41 pm | Report abuse |
  9. Teateaparty

    I love the downgrade. Let the stock market crash baby. More money for the rich as we can afford to buy tech slows on the low and sell them when the economy recovers. No taxes for me since my Republican buddies is covering for me in Congress. Damn. Sucks to be poor or American. Whichever you like...

    August 8, 2011 at 9:42 pm | Report abuse |
  10. truth

    i was hoping the market crashed! as in -8000 points in one day!

    August 8, 2011 at 9:43 pm | Report abuse |
  11. DR

    The country is run by politicians. Decades ago election / campaign was for few months and rest of the time was to ensure how to make America shine. Now the moment a president takes office, he starts his strategic planning for his second term in office. The so called American Companies that made America great are no longer American companies, In the name of Globalization they too forgot how they became this great and worried only on Earnings Per Share and they do not care about the people that made it great. All are a recipe for disaster.
    We need LEADERS who do not CARE ABOUT SECOND TERM in OFFICE but the NATION & PEOPLE. In this current climate sadly it is not the case. We do not need a President or a Speaker who walks away from a meeting and then going on to talk for any hour in prime time TV on the tax payers money. We need people who do not leave the meeting / conference room unless they do something about the situations.
    The people have no clue what a gallon a GAS or Milks costs because they have too many. People need to do some things to change this and People in DC should get back to business of working for people.

    August 8, 2011 at 9:49 pm | Report abuse |
  12. Old Fool

    This is all well planned and finely executed. Those with the bucks are cashing out and when the interest rates rise, and they will, they will create some safe little nest eggs, government insured and free from the forthcoming risk, lots of gold. This plan will eventually fail when even what they have turns to straw. There are people out there who understand how to profit from recession and depression. They learned from the mistakes made during the first Great Depression. This time around it will be the middle class that is jumping out of windows. They could have helped, but I fear it is too late. I agree with Mr. Sotero. I am not a Democrat because they are weak, and I am not a Republican because they have one forward gear and four reverses. We need a strong Independent party, something opposite of what the tea party is today. We need a party that is as smart as the Dems and as strong as the GOP. Bloomberg could make that happen. I dont know anyone else who can.

    August 8, 2011 at 9:50 pm | Report abuse |
  13. california99

    I really wonder?? is David Beer, CEO of Standard & Poor's a Republican? someone should look into that....very fishy!!

    August 8, 2011 at 9:51 pm | Report abuse |
  14. jim

    We deserve what we got.Out of control spending trillions in debt what could anyone expect.Next election we'll try again with new people who can forget partianship anf figure out whats best for the country.

    August 8, 2011 at 9:52 pm | Report abuse |
  15. Exxon

    We spent more than we had catering to special interests that put themselves before the USA. Now we are broke.

    So do we continue to put special interests before the country as a whole?

    Who decides ?

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