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. chelsea12

    Of course Obama will get the blame for the melt down when actually this whole mess started when Reagan was elected and finished us off when the tea party held the GOP hostage during the debt limit fiasco. Then the GOP held Obama hostage along with the rest of the county. All the republicans what is to get Obama out of the white house so they can completely destroy the country-or what is left of it.

    August 8, 2011 at 1:40 pm | Report abuse |
  2. Harald

    The reaction of Wall Street to the downgrade is absurd. The underlying problems that led to the downgrade are nothing new and should have been reflected in stock prices already for a long time.
    This shows again that stock prices are not based on any rational criteria but emotions, hence investing in stocks, at least in the relative short term, is like playing in the lottery.

    August 8, 2011 at 1:40 pm | Report abuse |
    • hammerdsteel

      and it has been that way, since American pride in manufacture meant something! Now it is false and as you say...emotion! If the pride and doing a good job at work does not come back to the workplace, then we have gone as ROME did!

      August 8, 2011 at 1:45 pm | Report abuse |
  3. Donavan

    The United States of America will eventually do the right thing......once they have exhausted every other possibility.
    Churchill

    August 8, 2011 at 1:41 pm | Report abuse |
  4. Fedup

    It's time to get rid of our polarized politicians (democrats AND republicans). They were elected to represent local people and local businesses and instead are representing un-compromizing parties and are polarizing the political process to the point of gridlock. Too many people are not employed and too many businesses are not hiring (or are disappearing.)

    It is clear that their interests are NOT that of local people and local businesses; they are following rigid party lines and are positioning themselves for re-election.

    August 8, 2011 at 1:42 pm | Report abuse |
  5. hammerdsteel

    This country has fallen....and it can't get up! Call Life Alert!!!

    August 8, 2011 at 1:43 pm | Report abuse |
  6. Ian

    The tea party tried to save the country from a downgrade and now they get blamed, liberals really are mentally challenged.

    August 8, 2011 at 1:43 pm | Report abuse |
  7. Ken

    Why care what S&P thinks – they are obviously wrong. Just because they have the letters next to a name doesn't mean the people who are doing the analysis are any smarter than those who rated all of the CDO's as AAA back in 2007 and 2008. I am confused by the reaction of the markets, but will use it as a buying opportunity. S&P wants to be in the game of politics now, and that is their right. However, I don't have to agree with them, nor do I.

    A couple of points and questions..... Why is this all Obama's fault? What happned to "we're all in this together"? Wasn't it the previous administration that was on a spending spree, looking to dole out money to political contributors, making sure that all of their buddies were taken care of, at the same time starting two wars, passing unfunded mandates, and cutting taxes? Where was the far right then? Oh wait, they were in that gravy train line, soaking up the rewards. Oh, wait again, actually, they weren't. The 'bigshots' of their organizations were – the rank and file were falling farther and farther behind, but being told that 'their time was coming'.

    It is time for ALL of us to grow up and act like adults. Stop spending where not needed. Invest where beneficial to the bottom line. Pay for what we spend. Pay down the debt. Bring jobs back into this country. If companies don't want to hire here, don't give them tax breaks for hiring elsewhere. We are always 'scared' by companies threatening to leave the country. If that is the way they feel – then leave. But impose penalties and tarrifs on them for then trying to bring goods and services back into the country. I am a proud American. I would never consider threatening my country and trying to strongarm it into conceding to my personal wishes. Act like Americans – Grow up and show us all that you are proud of your country – want to invest in its future – and want to be part of the solution – not just another pain in our sides.

    Last point – then I'll stop (for now). If the tax cuts to the rich are so important to creating jobs – then where are the jobs? After all, the previous administrations tax cuts, which have been extended, should be producing millions of jobs (in this country) according to all of the touting that was done in order to 'convince' us they needed ot be passed. If jobs weren't created by cutting taxes, then how can they be lost by raising taxes? I am not left wing, I am not right wing. I am an American who thinks we can do better, and thinks the vast majority of Americans deserve better. Those on the far right and far left – I really don't care what they think anymore – they have both worn out their welcome, and we need mature adults from MIDDLE AMERICA to step up and lead this great country forward. No more sound bites – don't wait for others to do it – let's step up and take this country back – it is long overdue.

    August 8, 2011 at 1:43 pm | Report abuse |
  8. Banker Bob

    Everyone had plenty of warning; everytime you paid for gas, groceries or a utility bill you were being warned by the massive increases in cost.

    Looky here, I don't need a Harvard PhD to know that if you print 300% more dollars (paper or digital) that the cost of everythng priced in dollars is going to rise 300%.

    Basic math...

    August 8, 2011 at 1:44 pm | Report abuse |
  9. DisgustedWithGovt.

    Put a black man in the White House and now we have bad credit. We should have learned by looking at Detroit and Oakland!! see the pattern??

    August 8, 2011 at 1:44 pm | Report abuse |
    • abovenyquist

      Racist much?

      August 8, 2011 at 1:57 pm | Report abuse |
  10. Dee Doodles

    S & P is to kind. US debt is junk status. Ask yourself could you pay back your portion? Get the depression on with. Let's reset. Let the creditors battle with the spenders, the Washington high hats, not the taxpayer. Pain is a given. Let's take it now. Get it over with. Pull your money from the banks and let them die here and now. Vote with your cash. Iceland took the pain and today they still have some issues but the economy is coming back and Iceland is far better for telling the European bank creditors to take a hike. Vote with your money.

    August 8, 2011 at 1:46 pm | Report abuse |
  11. Citizen Rights

    S&P should be prosecuted for their part in the Housing Bust and the cause of this recession (really a depression).
    A senate investigation found S&P along with Moody's and the banking system responsible for the cause of this recession. S&P is protected by a Republican passed law which prevents them from being prosecuted for their crimes. Change the law
    and prosecute them, just like any other criminal.

    August 8, 2011 at 1:46 pm | Report abuse |
  12. Displeased citizen

    I'm confused. How is it that we have SO SO SO many people that disagree with the way our country's finances are handled, how our country is run, and, generally upset about, who is running our country, but we're supposed to have a government that is "of the people, by the people, for the people??" Who are these people?? It is seeming more and more, day after day, that our country is being run my a small out-of-touch group of individuals that have no care for the people, about the people, or the equality of its people. Even the privileged rich (Matt Damon for one) can see the obvious injustice and aren't too gung-ho about it.

    August 8, 2011 at 1:46 pm | Report abuse |
  13. brown

    Congress! Your are all short timers!

    August 8, 2011 at 1:47 pm | Report abuse |
  14. Darren

    How is it that Americans would go about with a political revolution in this country without violence? Without causing financial distress to millions of Americans? Without a breakdown in our infrastructure and defense? Hmmmm...

    August 8, 2011 at 1:47 pm | Report abuse |
  15. Bill in VA

    S&P was/is a willing accomplice in what led to the financial melt down or are, quite simply, idiots. They (along with other rating agencies) give triple A ratings to subprime portfolios and then we watch as the world's financial system nearly goes in to complete collapse. Then when S&P notifies the White House of the down grade, S&P submits an analysis with a $2 trillion error in it that even our clueless Treasury Dept figures out almost immediately. And we are supposed to give credence to what S&P says?

    B

    August 8, 2011 at 1:48 pm | Report abuse |
    • Dreamer96

      S&P should have down graded the U.S. under Bush, after the Wallstreet mess. This good in the long run we need to raise revenue to pay down debt and create jobs by investing in green jobs, Algae plants Cellulose plants, rebuild brigdes, roads...pay down debt faster..

      August 8, 2011 at 1:52 pm | Report abuse |
    • Matt

      I think you've got it right Bill, but the boys at S&P most certainly not idiots. Too many of them have made too much money off of the series of recent financial crises for anyone to believe that they didn't know exactly what they were doing.

      I'm sure there are a handful of them that will buy up a lot of the bonds that are being dumped today and make millions for themselves. They've figured out that fear "works." A handful of people are likely to make a killing while lots more lose their shirts.

      August 8, 2011 at 2:07 pm | Report abuse |
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