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. RON

    Why do we aways blame the presidents for spending when in reaity they cant cut or spend on the scale they get blamed for on our debt. Dont people know we have a spending problem because its congress that writes the checks and not the presidents ?

    August 9, 2011 at 8:11 am | Report abuse |
  2. Carol

    Welcome to reality America.... noow our government joins the majority of it's citizens with less than perfect credit scores.

    August 9, 2011 at 8:16 am | Report abuse |
    • khmeyerson

      You are soooooo right!!! I think we all feel a little better knowing that our country has the same marginal credit rating that we do.

      August 9, 2011 at 9:33 am | Report abuse |
    • Veterean of wars

      This is to drc, you have the nerve to say the president is blaming republicans; the president has blamed both and has taken responsibility for everything that has happened. You are one of the reasons our country is in such turmoil, because you believe in the hype that these people running for office are spewing. You can not fix a country that has been spending money like water for 8 years, with no revenue coming in. Tell me who should take the blunt of the responsibility for the debt, the poor, middle class, seniors and veterans or oh!, how about getting the rich of the rich to take some responsibility for our debt by paying the taxes that they can pay someone to get around. Look at what they have done to the NYSE, only the rich can survive while the poor gets poorer!!!!!

      August 9, 2011 at 5:37 pm | Report abuse |
  3. Linda Swanson

    This is truly the tea party downgrade. Michelle Bachmann would not vote for the debt ceiling saying saying " nothing to worry about nothing would happen if the Congress defaults" Now she is blaming the Prez. How hypocritical can you get. John Beohner was in TV bragging he got 98% of what he wanted. So he also owns it. The Repubs still won't go along in appointing rational members to the debt committee that will put everything on the table to find a compromise to save us from further downgrades. So they own it. What the hell can anyone do with these miscreants?? They hate the Prez to the point they will completely take the rest of us down with him. They could care less about this country

    August 9, 2011 at 8:37 am | Report abuse |
    • Americaneedsrealists

      Sorry, but if the senate had voted for cut, cap and balance the DOW might be approching 13,000 right now. I believe the tea party backed that piece of legislation and wanted more cuts in the compromise along with a balanced budget amendment but the Democrats would not go along. This is all at the feet of Reid and Obama. S & P sia we needed at least 4 trillion in cuts, the Dems would not allow it.

      August 9, 2011 at 8:53 am | Report abuse |
    • drc

      Yes, keep drinking what the Dem party is filling your glass with. BOTH parties are to blame. The tea party pointing out the OBVIOUS fact that Washington is incapable of doing its job is not the problem. The problem is BOTH parties spending endlessly, in order to secure enough votes to be re-elected. Both parties pointing fingers at each other like 3 year olds and of course a certain someone at the TOP never taking responsibility for anything.

      I read people posting about how S&P got the mortgate meltdown wrong, I saw people talk about how they should sue S&P for putting out its 'opinion'. Please, they warned months ago that they STILL might lower the US rating regardelss of raising the debt ceiling and when it happens people like you come out of the woodwork spewing the Dem excuse of the day.

      There is still NO PLAN in place to reduce debt to the levels that is acceptable, both parties kicked the can down the road. The Senate (Dem Majority) who refused to even vote on any ideas put forth, yet they are not the party of NO, while the GOP controlled House is who is at fault? Please, half the country has no idea what the difference between the House and Senate is and how many members of Congress there are and yet will come on here writing about it is this persons fault or that persons.

      Well guess what, the buck stops with the man at the top, whether it was BUSH for 8 years or Obama for 2.5. The day Obama takes the blame and resonsibility for ANYTHING is the day he may get a little respect. His years of blaming others and creating more division in this country is tiresome.

      In ending I never voted for Bush, so you can save comments on me being a Dem or Rep. I have voted for both parties, I did not vote for Obama based on the fact he had no experience and ran on a marketing slogan. Clearly the rest of the country is realizing he has no experience and is not mature enough to take responsibility.

      August 9, 2011 at 9:01 am | Report abuse |
  4. Cindy

    Really, Mr. Obama This is a joke "We're still a AAA economy" It's a math mistake. What???? I'm laughing out loud. Nobody believes your rhetoric anymore.
    p.s. How was the party, fundraiser on the eve of one of the biggest drops in the market? Oh, that's right, everyone else's fault not yours. Why not party? Unbelievable.

    This is one independent voter that will NOT vote for you.

    August 9, 2011 at 8:38 am | Report abuse |
  5. Fact Not Fiction

    Nutcase propaganda radicals hijack American media and suddenly our entire nation is in both decline and long term gridlock over their "Hell No" demands and that is "not" TREASON by any other name ???

    You Folks Can Waste Your Time Debating The Radical Nutcase Right Agenda If You "Choose" More Gridlock,
    I'm Not Willing To Accept Their One Sided Propaganda Lies Or Their Stall Until The Next Crisis Melt Down Results.
    Their 15 Minutes Is OVER.

    August 9, 2011 at 8:52 am | Report abuse |
    • drc

      Yes, the nutcases that pointed out we are TAXED ENOUGH ALREADY are to blame for Washington being broken. Well, I guess at least the 53% of us who pay Federal Income taxes are Taxed Enough, the rest are the ones whining about how pathetic their lives are.

      August 9, 2011 at 9:04 am | Report abuse |
  6. Roger

    I would be interested in looking at S&P's analysis work to see how they draw their conclusions. I thought they should be sued when they gave AAA status to the junk mortgage bundles being sold on Wall Street and now a country that never has defaulted, always prints more money, has huge gold reserves gets rated below European countries. The Freddie and Fannie rating decline seems reasonable since they are billions underwater and property values continue to decline. If the US got downgraded on that point I would agree, but downgrading because the parties reached a waterdowned spending reduction doesn't seem reasonable. After the next election I think the country will run smoother.

    August 9, 2011 at 8:54 am | Report abuse |
    • Nia Simone

      WHO ARE YOU KIDDING

      August 9, 2011 at 5:35 pm | Report abuse |
  7. Martin

    There are plenty of countries that are below AAA that are doing just fine. Look at Brazil: BBB- and booming, booming, booming. Our goal shouldn't be to get back to AAA, it should be to put people back to work in good jobs and get homeowners back in the black! Of course, both of those things would help get back the AAA, but that shouldn't be the goal.

    August 9, 2011 at 9:15 am | Report abuse |
  8. Rob

    If the U.S. was a business, our rating would be lower than AA+ and our President (the CEO) would have been fired a long time ago. Time to wake up and live within our means as a country.

    August 9, 2011 at 9:20 am | Report abuse |
  9. David

    It should show people that this White House and Pelosi's House for 6 years went on a spending binge that was unprecednted in our history and forced the markets and our creditors to react. The only sane bunch in all this was Tea Party who actually forced a bipartisan deal to cut some spending. Granted it was not enough, but it was a start. Without them this White house would have tried to spend a few trillion more.

    Yet, the Obama white house, John Kerry, and much of the media want to blame the Tea Party for the downgrade because the held up the debt ceiling debate. Laughable and down right insulting to anyone with half a brain because this downgrade has NOTHING to do with that and everything to do with the ramifications of our long term debt and the path this administration has us on, a completely unsustainable one.

    But ignore those facts and keep on blaming everyone Obama can point a finger at. Campaigning and blaming others... the guy is brilliant at those two things. 2012 can not get here soon enough.

    August 9, 2011 at 9:20 am | Report abuse |
  10. Old fashion values

    Downgrade was accurate and predictable. Our country is unsound financially and does not deserve a AAA rating. We are on a path to insolvency/currency devaluation and the latest bill is nowhere near enough to change that course. America's top leaders are neither.

    August 9, 2011 at 9:23 am | Report abuse |
  11. ARND

    The ONLY thing that will bring about change is US. The Super Congress is going to be the same mess all over again. Americans need to JOIN TOGETHER to solve this debt crisis. The Association to Reduce the National Debt (featured on CNN, Fox, etc) is uniting Americans and enabling them to be part of the solution. IF WE STAND TOGETHER WE CAN MAKE THE NECESSARY CHANGE. Please join me America. Show your patriotism. Help your country in its time of need. Find the Association to Reduce the National Debt on the web or facebook, "like" them, spread the word and donate. PLEASE ACT NOW WHILE WE STILL HAVE A CHANCE. Thank you

    August 9, 2011 at 9:46 am | Report abuse |
  12. ELH

    So I should really worry what a private bond rating firm that missed all of the Wall Street and banking shenanigans says about anything? These people are a cut below the court jester as far as credibility goes.

    August 9, 2011 at 9:50 am | Report abuse |
  13. Dick Parry

    The faisco in the US Congress during the past three or four weeks has caused havoc around the world. S&P took the next step to downgrade the nation's credit rating. The reason was the inability of the President and Congress to come up with a proper plan to solve the problem. S&P said by 2015 the debt would increase 25% and by 2021 it would double to 50%. In other words the debt plan will not work. So far I have no confidence in either the President or Congress to do anything properly. I do know one thing, we must make changes in Social Security and Medicare. The entry age should be raised at least to 70 years of age for both to start. Also, look at means testing. Let the Bush tax cuts die, and remove all tax loopholes. Now thats a start. P. S. Medicaid should be reduced. Just for the record, I am 76 years old and I depend on Social Security and Medicare.

    August 9, 2011 at 10:14 am | Report abuse |
  14. Luann

    THIS IS HOW WE FIX CONGRESS:
    Congressional Reform Act of 2011

    1. No Tenure / No Pension.
    A Congressman collects a salary while in office and receives no pay when they are out of office.

    2. Congress (past, present & future) participates in Social Security.
    All funds in the Congressional retirement fund move to the Social Security system immediately. All future funds flow into the Social Security system, and Congress participates with the American people. It may not be used for any other purpose.

    3. Congress can purchase their own retirement plan, just as all Americans do.

    4. Congress will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 3%.

    5. Congress loses their current health care system and participates in the same health care system as the American people.

    6. Congress must equally abide by all laws they impose on the American people.

    7. All contracts with past and present Congressmen are void effective 1/1/12. The American people did not make this contract with Congressmen. Congressmen made all these contracts for themselves. Serving in Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work.

    August 9, 2011 at 10:25 am | Report abuse |
  15. Deborah Williams

    Well, I'm surprised it didn't fall a lot lower than that.....

    August 9, 2011 at 12:28 pm | Report abuse |
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