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. Did S&P get it right? | A political miscalculation

As the market reacts to the downgrade status, 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 and 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& 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. john

    Should Americans march into Washington and arrest all congressional republicans and hold trial for treason on the steps of the Capital?

    Should senior/decision makers of the previous administration be arrested and charged with grave crimes against humanity and the state ?

    Will Americans rise up or remain apathetic?

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

      I wish we would rise up. They are all a bunch of crooks if you ask me. We need term limits. And since they will never pass real campaign reform or term limit legislation, the only way to reform congress is to keep changing the players till we get it right. I don't mean tea party here...I mean we must show peacefully, but en force our demands to be represented. We need to become our own lobbyists.

      August 8, 2011 at 1:53 pm | Report abuse |
    • Banker Bob

      Nah...I got my case of beer & NFL starts any day.

      August 8, 2011 at 1:55 pm | Report abuse |
    • chris

      careful john – by singling out only republicans you are only fixing half the problem. case in point. Obama hires his buddy Immelt, CEO of GE, to be his job's czar. What does GE announce a couple weeks ago?!? it's moving it's health care division to China and investing $2 billion in jobs in China. please explain that one to me sofa liberals....

      August 8, 2011 at 1:59 pm | Report abuse |
  2. davegeorgia

    shoot the messenger? S&P was the bad guy? last time I saw it, bo and the dems were spending like drunk sailors, now they have to wake up and smell the coffee, America has had enuf of this BS, impeach indict incarcerate bo the ZERO

    August 8, 2011 at 1:49 pm | Report abuse |
  3. Markassa Wolford

    I blame politics and congress on both sides and lack of term limits and campaign finance reform.I am angry. Getting elected is the number one priority and to do that, you serve the people who write the big checks. Congress needs to be in for four years and both senate and house have a two term limit just like the president. If we are to undo and reform the size of government, we must also reform and undo the mega industries of war, media, health care, pharmaceuticals, energy , etc. that are grandious and demand to be fed. How do we dismantle them? We are also to blame for not demanding integrity from our representatives and we should examine our willingness to believe so readily in sound bites and 30 sec commercials to tell us how to think when we should be doing our own research. I hate that we have been downgraded but we deserve what we got. Blame goes all around here.

    August 8, 2011 at 1:49 pm | Report abuse |
    • Captain Nemo

      we HAVE term limits, they are called "elections". If you don't like them, vote the bums out...

      August 8, 2011 at 1:56 pm | Report abuse |
    • Matt

      It would be much more productive if we could take "soft money" out of the political process all together. I mean really....there's very little difference between a "campaign contribution" and a bribe or kickback. As far as I'm concerned it's all corruption. Each candidate gets "X" number of dollars and that's it...let the media agencies chase them and bring the story to the people. As things are now, american politics is a financial enterprise where principles are bought and sold as commodities.

      August 8, 2011 at 2:13 pm | Report abuse |
  4. Scam

    The S&P should not be in the rating game because they are part of the market. This is a bad game and someone is manipulating the market for a big score.

    August 8, 2011 at 1:51 pm | Report abuse |
  5. Andrew

    S&P got the rating right. The government is completely dysfunctional and this downgrade will polarize the politics even more. What we need is a problem solving approach. Not politics.

    August 8, 2011 at 1:51 pm | Report abuse |
  6. john

    As Americans debate, is the wealth of the nation evaporating?

    Is congress on vacation this month?

    Are americans lazy uninvolved apathetic?

    Has Rome burnt or is it burning? which one?

    August 8, 2011 at 1:52 pm | Report abuse |
  7. JP0

    The real problem is the stupidity of the American public who put these bozos into office. It seems we are getting what we deserve.

    August 8, 2011 at 1:52 pm | Report abuse |
  8. RG

    Hold On!!! Since when does a rating agency who took kick-backs during the mortgage debacle hold credibility? Really?! The politicians are morons, dems blaming rep's, tea party blaming obama, blah, blah, blah, both parties stone walling, and nothing gets done. I'm tired of all this horse-cra&. Can't believe anyone any more. And you wonder why we're in this predicament? Until the politicians get there act together, and come together, this economy is going to stink for a long time. At the rate we're going, we won't see any reasonable recovery until 2013, well after the 2012 election.

    August 8, 2011 at 1:52 pm | Report abuse |
  9. 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 1:53 pm | Report abuse |
  10. ROFLCatDown

    The S&P was heavily complicit in the buildup and cause of our financial crisis in the first place. Even they state that their rating are useless can should not be used to determine valuation or ability to produce money. The fact that they are now attempting to paint themselves as the responsible ratings folk, kind of like the Republicans trying to paint themselves as the fiscally responsible political party.

    Give me a 3rd party that isn't run or funded by billionaires please.

    August 8, 2011 at 1:54 pm | Report abuse |
  11. sickntired

    We have allowed this country to go down the sh**hole all by ourselves. Who, in their right mind, could believe we could keep allowing COLA in all of our pet projects to continue forever? This along with allowing everyone and his brother to get on the gravy train? We are in a crapload of trouble and we keep refusing to see it. We give incentives for people to do nothing. Have more, have some more money. Until we seriously look at our programs and only help those that need it......and ask for something in return for it..... we will continue to be in a world of hurt. Anyone receiving money fron this Govt needs to give eomething back......and Im not talking about the remote control for the TV.

    August 8, 2011 at 1:56 pm | Report abuse |
  12. Bob

    Pure nonsense. Our debt gets downgraded, so by all reason our bond prices should be dropping, and interest (yields) increasing, but they aren't. In fact, the prices are up and the yield, last I heard, was down to like 2.46%. So, stock prices are dropping, which one would expect if interrest rates were rising, but interest rates haven't risen a bit. This demonstrates two things, as far as I'm concerned–First, that the downgrade doesn't matter to the important people, those holding our debt. Second, most investors are really unsophisticated about how all this works. I just increased my 401K withholding, I'll be buying low for the next 2 years and enjoying the payoff thereafter.

    August 8, 2011 at 1:56 pm | Report abuse |
  13. w2lucky

    Is this the beginning of a new form of revolution? I hope so. When people get fed up, it can get ugly and it needs to get ugly right now. I wouldn't want to be a politician right now. They caused this mess and I'm convinced they are clueless on how to solve the problem.

    August 8, 2011 at 1:57 pm | Report abuse |
  14. bek

    S&P probably has some people who were involved in this decision who went ahead with this in an effort to damage Barack Obama's presidency. No other agency has deemed it appropriate to downgrade the country's rating. Even Warren Buffet disagrees with S&P's decision. The filthy rich, backed by Tea Party extremists and some other Republicans as well, will do ANYTHING to descredit Obama and get him out of office in 2012. Meanwhile, George Bush's administration caused the bulk of our current economic problems.

    August 8, 2011 at 1:58 pm | Report abuse |
  15. Lenny Pincus

    Whether the S&P is a capable organization or not, their effect on the economy is profound. And it is impossible to argue that the downgrade is anything but a repudiation of the Tea Party tactics in government. It is certainly obvious when at Teabagger rallies over the weekend the news of the downgrade was greeted with cheers and a real sense that they had accomplished something. Every American should be aware that Teabaggers are not good citizens but traitors.

    August 8, 2011 at 1:58 pm | Report abuse |
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