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Thread: Post office loses $2B in quarter

  1. #1
    SiriuslyLong is offline
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    Joined: Jan 2009 Location: Ann Arbor, MI Posts: 3,560

    Post office loses $2B in quarter

    WASHINGTON — The Postal Service is continuing to hemorrhage money, reporting a loss Tuesday of more than $2 billion over the first three months of the year and warning it could be forced to default on federal payments. Such a default would not interrupt mail service to millions of Americans, but it could further hobble an agency struggling with a sharp decline in mail because of the Internet and a tough economy. The agency says the $2.2 billion loss covers Jan. 1 to March 31 and is sharply higher than the net loss of $1.6 billion for the same period last year. The post office also said it will have reached its borrowing limit, set by Congress, of $15 billion by the end of the fiscal year. Unless Congress intervenes, the Postal Service said, the agency won’t have the cash for certain payments to the government, such as billions for a trust fund to provide health care benefits for future retirees.

    Read more: http://newsok.com/national-business-...#ixzz1M3MD6C4g

    The Post Office pretty much had a monopoly for a long time. Private companies like UPS and Fed Ex ate their lunch. This makes a great case study should some grad student need to write a paper on "competitive rationality".

  2. #2
    SiriusProfits! is offline
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    Joined: May 2011 Location: Lone Star State Posts: 11
    The post office has brought a lot of this on themselves due to the outrageous salaries to their employees. Then of course those wages are then paid for on the consumers end. I never use the post office, everything is done online these days for me, seriously do people actually mail stuff these days?? lol

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