Skip to comments.US Postal Service warns it could default
Posted on 08/05/2011 6:03:09 PM PDT by GQuagmire
The US Postal Service warned on Friday that it could default on payments it owes the federal government, just days after the US government itself narrowly averted a default.
The government's mail service said it lost $3.1 billion in the period from April to June, blaming "the anemic state of the economy" and the growing popularity of electronic communications over old-fashioned letters.
As a result of its mounting losses, the US Postal Service said it would not be able to make a legally required $5.5 billion payment in September to a health-benefits trust fund.
"Absent substantial legislative change, the Postal Service will be forced to default on payments to the federal government," it said in a statement.
(Excerpt) Read more at news.yahoo.com ...
Yep. And they’ve known this was likely since spring.
But nobody there will take a salary cut.
Stop Saturday delivery and lay some postal workers off. No.....just keep on doing what you’re doing...idiots!!
Oh boy! Pass another debt ceiling increase or the postal service will go into default! (I just can’t be sarcastic enough!)
Cut them loose. Let it go.
All kinds of good news today that we can blame Obama for. And who cares if the USPS defaults- maybe it’s about time that we let FedEX, UPS and other private businesses take over.
The wouldn’t be in such a mess if they didn’t pay in excess of $40k a year for part-timers to work no more than 3 days a week...
A fifty percent cut in management and administrative staff would put them back in the black with a noticable improvement in efficiency and quality of service, but it’ll never happen.
i wonder if the horse-shoe industry took this long to die.
probably not. they weren’t ‘latched onto’ the public teet...they had families to feed.
fannie mae??? freddie mac???
So a federal government agency that is funded by taxpayer dollars can’t pay it’s debt to a federal government agency which is funded by taxpayer dollars which can’t pay it’s debt either.
Is it time yet?
one of the most successful unions threatens their host.
for four decades they’ve always hired recent immigrants over native americans.
i say privatize. run the usps as business, not one, but several competitors.
they lost the most profitable segment of their business to competitors—ups, fedex et al.
If the postal service was run by democrats they
would want to raise the price of stamps for the
wealthyist 1% of the nation while offering free
delivery to the poorest.
I have the answer on how to avoid Default. Spend more! I’ve learned that from our Lords in D.C. That brilliant tactic has kept our pure AAA credit rating....oh.
Hows that hope and change working now?
The Post Office, just like General Motors. Pension benefits that are choking the life out of both. GM has a chance, but the PO doesn’t. Shut it down, and parcel it out to Fed Ex and/or UPS if they want it. Bill paying is going electronic, and I don’t need the junk mail that fills my mailbox. I can honestly say that I have never bought anything as a result of a mailer, and the mailers are being delivered at less than the cost of delivery while they kite the first class mail to try and break even.
Sadly, a Postal Service is mandated in the Constitution.
Correct. I won’t do business with any company I don’t have to (sadly, my electric company is still in the stone ages) that does not e-bill and collect e-payments.
I check my mail every 2 weeks. 99.9% junk mail. The other .01% is the electric company and cards (2 or 3 times a year) from the out of town 80+ year old family members.
Remember, this is were all the people who left Viet Nam after its down fall in the early 70’s went to work. The US government premised them jobs.