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. Ann

    Wonder if the results would have been the same if when weeks ago the agreement between the Republican House Speaker and the Democratic President had passed. I think we would not have suffered a lower rating...that plan better addressed our problems and how to raise money as well as cut spending.....but who blocked it? The Tea Party...Boehner and Obama needs to bypass the TP and get to work. Their plan was far from perfect but was better for the country...the TP has tunnel vision...and that is not a vision for the better of the country.

    August 8, 2011 at 1:31 pm | Report abuse |
    • Joe S

      Where do you guys go to school?........the downgrade occurred because we have TOO much debt.......because there was no serious talk of reducing the debt. The Teaparty members were the ones arguing for greater debt reduction. No kidding folks.......Are you so easily misdirected?

      August 8, 2011 at 1:45 pm | Report abuse |
  2. Brian L

    I hope people will remember at election time who is steering the ship of the U.S. economy into the breakers for the sake of furthering their misguided ideology. Get rid of the fringes of both parties- compromise is not possible as long as they are at the table. We have got to both cut spending and raise revenues to get out of this nose-dive or we ALL will pay dearly.

    August 8, 2011 at 1:31 pm | Report abuse |
  3. Marrion Fuller

    100% Republican wrought conspiracy to destroy Obama... They orchestrated the Mortgage Backed Securities fraud (with S&Ps help), and now they've orchestrated this fiasco (with S&Ps help)... The ONLY THING they care about is destroying Obama... NOTHING ELSE!

    August 8, 2011 at 1:31 pm | Report abuse |
  4. BarbaraSamburu

    Someone has S&P in their pocket.

    August 8, 2011 at 1:33 pm | Report abuse |
  5. bbrooker

    My take? Welcome to the world of "fiscal conservatism", or as my 401K likes to call it, "Tards in Charge."

    August 8, 2011 at 1:33 pm | Report abuse |
  6. KKS

    thanks to the actions of our elected politicians (or the lack of it), we the hardworking middle class citizens are paying dearly with losses to our hard earned savings in our retirements accounts. once elected, Republican or Democrat, they should come up with a solution which is good for the country and not vote on party lines. also, as politicians, their planning seems to be getting things done at the 11th hour. will they do the same with their home finances?

    August 8, 2011 at 1:33 pm | Report abuse |
  7. The Logical Centrist

    The latest 'crisis' is politically driven. The S&P was part of the mortgage meltdown and with all their shady practices some of their top people should be in jail. So the S&P owed Republican politicians a big return favor for keeping them out of the slammer.
    The stock market fall is fodder for the main stream media, it is all paper value to begin with. So the losses are on paper – just as large gains are on paper.
    I feel for all the people with 401k's who are mostly working class. The rich don't bother with silly things such as a 401k.

    August 8, 2011 at 1:34 pm | Report abuse |
  8. 1HiFlyer

    Well after getting bashed for stating several times that the rich should be taxed more, one of the high managers with the S & P said that the credit rating may have stayed at AAA if congress had listened to the administration and raised taxes on the high income earners of this country. Donald Trump just stated that the high income earners should be taxed higher to get more revenue. Why were all these people silent when the republicans made it seem that The President was the only one in the country that believed that raising taxes on the rich would be the right thing to do? My main problem with the democrats and The President is that they are not as hard nosed as the republicans on getting what they want and what most of the people want. Getting this country's economy righted and everyone paying their fair share for the liberties we all want to enjoy here.

    August 8, 2011 at 1:35 pm | Report abuse |
  9. o

    S & P is not trading on a sterling reputation. The did, after all, give AAA rating to the worthless mortgage-backed securities that precipitated this whole economic mess. Without a doubt, they share in the blame for creating this situation in the first place.

    August 8, 2011 at 1:35 pm | Report abuse |
  10. 1ofTheFallen

    Buy Swiss Gold SGOL. The safest currency and economy at the moment. The Dems haven't passed a budget in 2 years and increased taxpayer debt and food stamps by 40% while unemployment will start getting worse. The Dems do not have a plan and no idea how to cut spending and were only forced to limit their spending by the tea party. Dems spent $4 Trillion and now the economy is getting worse. Lousy Management.

    August 8, 2011 at 1:36 pm | Report abuse |
  11. 1ofTheFallen

    Buy Swiss Gold SGOL. The safest currency and economy at the moment. The Dems haven't passed a budget in 2 years and increased taxpayer debt and food stamps by 40% while unemployment will start getting worse. The Dems do not have a plan and no idea how to cut spending and were only forced to limit their spending by the tea party. Dems spent $4 Trillion and now the economy is getting worse. Lousy Management.

    August 8, 2011 at 1:36 pm | Report abuse |
  12. mark in arkansas

    Everyone wants to shoot the messenger. Bottom line, we owe 64 trillion dollars, and take in about 2 trillion in taxes. We owe a ton of money, and have NO budget in place, or a strong plan to pay back the debt. Why wouldn't we have a bad credit rating? I'm surprised we haven't been downgraded to junk status.

    August 8, 2011 at 1:38 pm | Report abuse |
  13. bigfoot

    There's no way that our government leaders will agree upon a realistic plan to raise this country out its economic slump. They sold-out a long time ago.

    August 8, 2011 at 1:38 pm | Report abuse |
  14. tonyl

    S & P is a "D" rated agency for it's performance during the mortgage back security debacle which was the main reason for the world economic crash and US recession. This agency has NO CREDIBILITY left to grade anything. In fact they have been already corrected in their calculation mistake by it's experts in the downgrade formula they use in their evaluations. They missed $2 Trillion in their totals but up on catching the mistake they became stubborn like Tea Party to be able to admit their mistake and just would not change their position. Their credibility is in the dump. China has AA- rating.

    August 8, 2011 at 1:39 pm | Report abuse |
  15. PingPong

    Is bringing debt from 8.9 trillion to 13 trillion accelarating? That too, to fund the war that some idiot started for their personal revenge and personal oil interest!!! Great misleading!!! reaction occures when action has already happened. Action was done by replican this is result of that action. there is no reason to blame the result...

    August 8, 2011 at 1:39 pm | Report abuse |
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