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. Joel

    Australia, Canada, Denmark, Germany, Netherlands, Norway, Singapore, Sweden, and Switzerland are all still solidly AAA, and every one of them has universal health care.

    August 8, 2011 at 10:20 pm | Report abuse |
    • RandyM

      None of them maintains any responsibility for protecting themselves from aggressor nations. If they have a military it is wholly inadequate. I'll bet they don't have a huge welfare class either. If we reduce our military then China and Russia take over pure and simple. I for it, get rid of Welfare and then we can afford Healthcare. Pick your poison.

      August 8, 2011 at 10:33 pm | Report abuse |
  2. notbob

    China's rating agency has downgraded US treasuries mutiple times in the last 2 years yet when it is announced the media spins it as an act of economic warfare when in reality it is simply the truth. We deserve a ratings downgrade for our bonds for no other reason than to stop washingtons profligate ways! If you want to see it fixed vote Ron Paul 2012!

    August 8, 2011 at 10:20 pm | Report abuse |
  3. david williams

    I do not understand what was different the day S&P lowered their rating than the day before! We knew all about the deficit and the political gridlock long before they chose to lower the rating. Just that morning I read that the dollar was up against the yen and euro, and that other countries were flooding into US bonds because they knew that they were the safest place to park their money. The downgrade makes no sense. Why are other countries still buying our bonds if our credit rating is really in question? We have never defaulted, nor will we. I have to believe the decision was either politically motivated , or someone profited from the downgrade. The slide in the stock market makes no sense either. Nothing has really changed from what it was before. If that is true then the market will come back up as fast as it declined.

    August 8, 2011 at 10:22 pm | Report abuse |
  4. Rhonda

    It is time for rational sane people to STOP blaming political parties!! Every president, from each political party has overspent, and has contributed to the National Debt. It is WAY past time to nip it in the bud. It is time to do what any intelligent person who is over their head in debt has to do, and that is, pull in the belt and scrimp and cut and make a significant spending changes! We can do this! We all need to join together on this, every person, and every party! We need to solidify as a nation, and determine that we will eliminate, at least a significant portion of this horrendous debt. And that is at the least. If it was a family, being tutelaged by Dave Ramsey or Clark Howard, we would tighten the belt until ALL the debt was eliminated. If we were good grandparents to our future descendants, that is exactly what we would do!.

    August 8, 2011 at 10:28 pm | Report abuse |
    • RandyM

      I'm with you on this one. Don't drink the kool-aid. Know the tough questions, and know the answers before you ask the question. don't ask for information, get the information and know it. don't trust any politicians. Vote out of an abundance of knowledge. don't accept political action committees arguments. Yes that includes AARP, Moveon, and the conservative think tanks. Listen to the other side with a wary eye and verify. Yes politicians lie and misquote and change their minds. Keep up. Recognize a flip flopping party line when you see and call it out. don't let your guy fall into that trap. we need honest debate not rhetoric.

      August 8, 2011 at 11:00 pm | Report abuse |
    • Kristin

      I agree. We need to cut the dead weight. Maybe we should start up suicide booths for those who can't pull their own weight. Or require a certain level of income before people can procreate – anybody below this income level should have mandatory birth control. We should be ashamed of ourselves in this country. Our debt is *shameful* and is clearly the fault of the American people at large. Why, my entire family has used infrastructure that I'm sure they couldn't actually afford. I know my kids will be attending a new school that my state took a *loan* for! And *why* you may ask? Because the other school wasn't big enough to house the students it's supposed to serve and it had some kind of problem with asbestos and lead paint and old wiring. It worked well enough when my grandma went there. Geez. And overcrowding shouldn't be such a problem if more people only had kids when they could afford it. Also, what's with all these people getting sick and losing all their money and not being able to work. Honestly. Suicide booths. Excellent idea.

      August 9, 2011 at 8:32 am | Report abuse |
  5. RatingsMan

    And who rates the ratings agencies? I would bet that S&P will pay a lot of extra public accountancy fee on this years tax returns and would not be surprised if the SEC looks into all their employees short positions within 2 months of the delivery of the downgrade. Huh? waddya think?

    August 8, 2011 at 10:33 pm | Report abuse |
    • RandyM

      Lets hope not. But you know Bill Clinton was infamous for sicking the IRS on people. And Hillary is in the administration so maybe not so farfetched. 🙂 Ok thats right we don't believe in conspiracy theories. This was just so you Libs would know us Conservative have our own half-baked conspiracy theories. And they are just as useless and unproductive as your conspiracy theories.

      August 8, 2011 at 10:38 pm | Report abuse |
  6. Robbin

    Ok all u guys who like this s&p melt down. U must be debt free, 401k has already peaked your ahead, sold your stock bought gold, invested I'm sure in bonds, stocked up on plenty of tea......... Then go ahead eat your heart out, wait till December when the mighty twelve team get together and try to settle this debt. From what I'm reading most of u guys pockets are loaded already. When u loose it all just take two pills and blog in the morning.

    August 8, 2011 at 11:17 pm | Report abuse |
  7. *yawn*

    Investors determine the demand for Treasury bonds, not the S&P. This is hardly the world ending nonsense the media has played it up to be.

    August 8, 2011 at 11:23 pm | Report abuse |
  8. DB402L

    The economic mess was NOT caused by the Democrats giving away too much welfare. There was plenty of money for everything until the Wall St Multinational Corporations outsourced our jobs in their greedy quest for ever more profits. Instead of millions of Americans working paying taxes into the coffers- you've got millions losing their houses, not eating out, not buying much of anything, collecting unemployment, food stamps, heating assistance, etc etc etc. Then add in multiple unpaid for wars, a tax break for the wealthy, etc etc etc. Bring the jobs back & the entire problem goes away. Hope people continue to take their money out of stocks & continue to support our govt by buying our debt. Priceless!!

    August 8, 2011 at 11:28 pm | Report abuse |
  9. Jeannie

    The blame for our credit lies with everyone. Since God has been taken out of schools, communities and even our Church America has gone downhill. If we go back to God our country will improve. In the days of our forefathers God was put as the head of everything they did, said and thought about doing. His direction in their lives and in this Country was impeckable. Because He was glorified America thrived. But later when people started letting the minority exclude God and as Christians and Americans we did not rise up to see that God was left in the schools, in the communities and in the Churches. So whose fault is it for the failure of America. Everyone's. For that we will be held accountable when we have no choice but to face God.

    August 9, 2011 at 12:01 am | Report abuse |
    • Dr. P

      There is the separation of church and state in this country and we need to keep it that way! If you start bringing up God and religion then we all get to fight over WHOSE "God". The Muslim God? The Jewish God? The Christian God? The Mormon God? We can be a civil, moral country without religion.

      August 9, 2011 at 1:25 am | Report abuse |
    • Apachecav

      Cheer up Jeannie, Dr P is mad because there is a God and it isn't Him/Her/it....

      August 9, 2011 at 7:26 am | Report abuse |
    • Linda Swanson

      Wrong, wrong,wrong. Thomas Jefferson wrote exceptional pieces about the need for the separation of church and state. They had come here to escape the meddlings of the Church of England and others in the lives of government and wanted nothing to do with it. Read your history and stop making Bachmann like factless comments.

      August 9, 2011 at 12:23 pm | Report abuse |
  10. SCREWED

    GOP ASS HOLES

    August 9, 2011 at 12:03 am | Report abuse |
    • Dr. P

      Don't forget the teabags!!

      August 9, 2011 at 1:27 am | Report abuse |
    • Apachecav

      So what part of we can not spend money we don't have do you not understand.. oh wait thats right in the magical land of democrats were unicorns live and money flows from a money waterfall that is neveer an issue... Sorry screwed the party is over and it is time to grow up!...

      August 9, 2011 at 7:30 am | Report abuse |
  11. Steve

    Vote for people in the middle and copy Canada.

    August 9, 2011 at 12:26 am | Report abuse |
  12. ibrad

    Where were they when countrywide was playing fast & lose?

    August 9, 2011 at 12:42 am | Report abuse |
  13. rsmnr

    S&P rates every country in the world all the time, and we are supposed to believe that the rating has been done objectively and face its implications. But, when S&P downgrades the US, all hell breaks loose? Oh, I get it. This is what they call "American Exceptionism". One standard for the US and another for the rest of the world!

    August 9, 2011 at 2:59 am | Report abuse |
  14. Toester

    I remember back in the 1980's when this all started. Arms race with Russia. Massive build up of arms. Lower taxes to boot. Throw in iraq (a few times) plus afgahnistan, bosnia, etc. All with lowered taxes.

    It doesn't take a math wizard to figure out that it is unsustainable. Obama is the only president that i can remember actually suggesting tax increases. And yet he is cursed out by the GOP et al. The politics are counterproductive.

    The US needs a leader more than ever. A true leader sometimes has to make unpopular decisions....for the good of the country. Tough times are ahead – democrat or republican- it matters not. Good luck.

    August 9, 2011 at 3:10 am | Report abuse |
    • Counting Wizard

      I don't think it would matter what democrat was in charge at this point, the president can't solve these issues by himself. Republicans may not be to blame for all our problems, but their strategy is stopping the gears of government to show that its the other party's fault. We'll have to wait a few more years until they can convince people that it was the fault of democrats so they can regain the majority in all branches of government. Only then will the machine start working again.

      August 9, 2011 at 4:52 am | Report abuse |
  15. RON

    The country is paying so its a politica move nothing more. What they did they could do to any of us even if we are paying our bills but laid off. It is BS on their part because of that. However i believe if the tea party wasnt so slash and burn for poitical reasons we wouldnt be having this problem. They are the ones holding this nation and the GOP hostage all for their slash and burn politics. Yes we need to cut spending but you cant do it as they think not to a nation of 330 million folks. This isnt a company where slash and burn might work . All they are doing is harming the people and the country.

    August 9, 2011 at 8:07 am | Report abuse |
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