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. a6102658

    Our Republicans representatives are more interested in winning the argument of the day more than what is best for this country, their style of government will bring more painful reminders of how our political system is broken.
    They are already politicizing the "Super Congress" commission and advertising to anyone that ones to hear that Tax revenues are not necessary and eliminating Tax loopholes and subsidies for the wealthy equate to raising taxes.
    It is going to be even uglier that the past debate, but they do not care, they will care only about winning the day.

    August 8, 2011 at 1:19 pm | Report abuse |
    • John

      Please explain how spending more thatn 100% of GDP is what is best for the country....

      August 8, 2011 at 1:27 pm | Report abuse |
    • a6102658

      By your comment I am going to assume that you are talking about George Bush, correct?

      August 8, 2011 at 1:31 pm | Report abuse |
  2. Alex

    Considering how awful they rated the mortgage back securities that helped contribute to the mess we're in now, I don't think their word has any weight behind it. Clearly they can't be doing their job very well and if anything from their last mistake, any rating they give should be considered unreliable. I think the US should discredit S&P and label the company as "Unreliable ratings agency", including asterisks next to any rating they give for countries, businesses, mortgages...ect.

    August 8, 2011 at 1:19 pm | Report abuse |
    • John

      Typical liberal response. Discredit and silence anyone who disagrees with you.

      August 8, 2011 at 1:29 pm | Report abuse |
  3. No downgrade during the depression

    There was no downgrade during the depression and we had unemployment around 25%. S&P is playing political games but they were involved in driving our economy in the ground by giving the credit default swaps a triple A.

    August 8, 2011 at 1:20 pm | Report abuse |
    • easyrestin

      No downgrades then nor during the cdo crisis but we have a war against our credit defaults with a boy tax cheat at treasury responsible to a Community Organizer. Real light weights compared to before and what is need now.

      August 8, 2011 at 1:38 pm | Report abuse |
  4. Jane

    This is fun to watch. We spent decades dismantling this country to feed our greed and nobody cared as long as they got theirs. Now that the well is running dry we have this amusing hand-wringing pandemonium fueled by the gluttons who destroyed us. Hey overfed whiners...read some history. It can get worse, much worse.

    August 8, 2011 at 1:21 pm | Report abuse |
    • John

      Very well put Jane!

      August 8, 2011 at 1:30 pm | Report abuse |
  5. jo an

    I would 'throw up my hands' but I'd have to keep them up all day....I don't know where to start with the 'list' to blame!! Or do I know what good blame is? I've seen this coming since Ronald Reagan was elected. He started us down the 'slippery slope' and now we have hit bottom. Perhaps before we act, we need to have someone teach us about how we got here and then quietly and reverently go inside and find wisdom and strength to go 'another direction'...

    August 8, 2011 at 1:22 pm | Report abuse |
  6. Stephen

    Just to be clear these are the same guys who gave good ratings to securitized subprime loans. How are they still in business when they did so much to put us where we are today?

    August 8, 2011 at 1:23 pm | Report abuse |
  7. PingPong

    It is extreme simple both spending cut and increasing revenue is important but as it turns out Some people have self and mllionairs frieds interest exceed the national interest. Hence they shoud be the one who go to jail for selling this country. People as stupid as George Bush , who BTW was not even ready to acknoledge that economy has problem and denied taking steps, can bring down budget from billions of dollar surplus to trillions of dollars in deficite for theis Oil giant and billionair friends and no one is uttering a word for that...What a great...

    August 8, 2011 at 1:25 pm | Report abuse |
  8. Tom

    S&P is saying to US gov: if you spend your way out of recession, we'll downgrade you; if you cut spending and let the economy contract as a result, we'll downgrade you; if you don't dump your gold reserve to pay off at least 4 trillion worth of debt, we'll downgrade you, and if you *do* dump your gold reserve then we *will* downgrade you.

    August 8, 2011 at 1:25 pm | Report abuse |
  9. CJ

    That anyone thinks they can point at ONE of the parties and lay blame is why we are where we are. Both parties have played their role in getting us where we are today and you all blindly support follow and spew the same BS or know it's mostly BS but you back what you see as the lesser evil.

    News flash, there is no lesser evil in either party.

    August 8, 2011 at 1:27 pm | Report abuse |
  10. Jeffer65

    We American need to stop electing Democrats and Republicans to national office. Give some of the other political parties a chance, The Dems and Repubs are all corrupt, bought and paid for.

    August 8, 2011 at 1:27 pm | Report abuse |
  11. rvd

    S & P should downgrade the congress. They are the root cause of problems. Republicans are picking on poor helpless sesniors. Democrats and the President does not have a backbone to stop these merciless people.

    August 8, 2011 at 1:27 pm | Report abuse |
  12. DB402L

    Fannie & Freddie & the Housing Market did not cause our current financial mess- the OUTSOURCING of our JOBS did that! Gee, when you lose your job- what happens? You lose your house! Who outsourced the jobs? Wall St. companies & their Republican big business cohorts. Then they say we can't stop tax loopholes because we'd be taking money from the companies that create jobs! What- the same companies that outsourced our jobs or the same companies who are currently sitting on huge cash reserves? Not creating jobs with that money- sitting on it! I wonder how much good it would do if all of us "little Americans" started buying government bonds- like we did during other wars. Maybe we could buy up those bonds that China owns & own our own government again. There are millions of us.........maybe $100 at a time............

    August 8, 2011 at 1:28 pm | Report abuse |
  13. PingPong

    Wake up american people not obama. it is the congress and administration of GB era cause the debt of 8.9 trillion dollars and remaining the cascading effect of that. it is better to improve social life in US then throwing tax money in Iraq war...Atleast it makes people happy...

    August 8, 2011 at 1:29 pm | Report abuse |
    • John

      I'm so glad that you are happy! Unfortunately the 53% of us who are footing the bill aren't very happy......

      August 8, 2011 at 1:34 pm | Report abuse |
  14. S. Dogood

    S&P is an economic terrorist organization. In my opinion they were complict in the housing market crash. Not an innocent but incompetent bond rating organization but purposely rating bonds they knew were junk as worthy investments. They should be investigated for economic terrorism, fraud, and conspiracy to commit Treason. The company should be extinguished, all of their assets confiscated and their executives jailed in Guantanamo just as any other terrorist.

    August 8, 2011 at 1:30 pm | Report abuse |
    • John

      It would appear that the latest Dem polling shows that using the word "terrorist" when referring to any person or group that you disagree with is a good thing. The Dems controlled the WH and Congress for two years and al they managed to do was accelerate the rate at which we were going into debt. I say they are the "terrorists".

      August 8, 2011 at 1:33 pm | Report abuse |
  15. TooClose2DC

    It is interesting that a significant reportable portion of McGraw-Hill, parent comapny of Standard & Poor's, is owned by a foreign company which has recent ties to a Shanghai based company. The Ontario Teacher's Union (OTU) (based in Ontario, Canada) has been pressuring McGraw-Hill to divest itself of assets, notably the broadcasting group. Pressure has been a normal tactic for the OTU. It seems odd that China downgrades the U.S. rating and then a rating agency with ties to a foreign comapny also downgrades the U.S without prior notice and in direct contrast with the competing rating agency, Moody's. The FBI and SEC should take a stern look at the stockholders of McGraw-Hill and check if undue foreign pressure caused S&P to issue the downgrade.

    August 8, 2011 at 1:30 pm | Report abuse |
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