USPS needs a bailout too!!!!!!!

Discussion in 'Economics' started by S2007S, Aug 5, 2011.

  1. S2007S


    This is nothing new, the USPS is losing so much money due to the drop in mail volume its become a complete joke, guess the only way out of this is to raise the price of the stamp yet again. Well they can keep raising the prices of stamps all they want, mail volume will continue to drop in the years to come and guess what, in the next 10-20 years there will be no such thing as mail, everything will be digital, no more circulars, no more magazines, no more bills being mailed out as everything becomes paperless, I know so many of you don't believe it, but mail will be non existent in the next decade or so. They are already closing thousands of post offices across the US.

    USPS posts $3.1 billion loss in Q3, warns of default

    On Friday August 5, 2011, 10:57 am EDT

    By Emily Stephenson

    WASHINGTON (Reuters) - The U.S. Postal Service posted a net loss of $3.1 billion in its third quarter and warned again it would default on payments to the federal government if Congress did not step in.

    Total mail volume for the quarter that ended June 30 fell to 39.8 billion pieces, a 2.6 percent drop from the same period a year earlier, as consumers turn to email and pay bills online.

    The mail carrier, which does not get taxpayer funds, has struggled to overhaul its business as mail volumes fall. It has said personnel costs weigh heavily and is facing a massive retiree health benefit prepayment next month.

    "We are experiencing a severe cash crisis and are unable to continue to maintain the aggressive prepayment schedule," Joseph Corbett, the agency's chief financial officer, said in a statement.

    "Without changes in the law, the Postal Service will be unable to make the $5.5 billion mandated prepayment due in September."

    Congress, which last week ended a vitriolic debate about the U.S. government's debt levels and budget deficit, is now in recess until early September.

    USPS cut work hours during the quarter by 3.1 percent compared to the previous year, when quarterly net losses were $3.5 billion.

    The Postal Service said it lost $5.7 billion during the nine-month period ended June 30, compared to $5.4 billion in the same period of 2010.

    In its fourth straight year of declines, the agency had a net loss of $8.5 billion for the 2010 fiscal year.

    Despite the overall losses, USPS said shipping and standard mail saw growth in the third quarter, with revenues up 7.3 percent and 1.7 percent respectively. Packaging services revenue rose 3.2 percent.

    Postal officials have called for Congress to change the way USPS operates, saying it needs more flexibility to close failing post offices, cut Saturday delivery and raise rates.

    The agency is studying about 3,700 of its 32,000 post offices, stations and branches for possible closure. Officials plan to replace post offices by contracting with private retailers to sell stamps, offer shipping and provide other postal services.
  2. Lucrum


    They should have shut down that grossly inefficient federal program about a year after Al Gore invented the internet.
  3. Al gore did not invent the internet. It was Tim Burners Lee.
  4. TGregg


    Uhm. Nope. Us technical folks were using the net long before TBL showed up with his browsers. The internet is a lot more than just the World Wide Web.

    And I was using the net (as part of a . . . uhm. . . unsavory group) in `88. I may have been using it as early as `85, I was on some at least country wide network using something called Phoenix. I think it was called that. Met some folks a thousand miles away. Never saw them.
  5. It wasn't Al gore though. What was that unsavory group?
  6. TGregg


    They are long gone and the statutes are out, so I guess it doesn't matter. We pirated software, encrypted the snot out of it and shuttled it around the planet. I was easily the youngest guy in our local group. When my main contact introduced me to his contact (a middle aged guy, maybe even older), he pulled a bottle of scotch out of the drawer and drank it straight - didn't even offer us any. He thought of us as kids, even though I was at least 21 and my contact had to be 30 or so.

    We even had middle managers who'd get their secretaries to type up the manuals for the software. We rocked. It wasn't a bunch of Napster kids which is why we never got popped. We were mostly middle aged folks with mad tech skillz.

    Not me, of course. I was a fringe hanger-on for a brief time. I didn't have the game at the time to play with the big boys. Pbbtt, I don't have the mad kracking skillz to hang with the pirates today, either, although I have cracked a few protections. Easy cracks, though. Years ago. One was as simple as replacing text strings in the unencrypted exe. (yeah, my ex wife could probably have pulled that off).

    That was back in the glory days of the net. But even getting usenet feeds or even newsgroups was awesome. All well before WWW.
  7. Are you a computer programmer then?
  8. Lucrum


    Yes I know genius, it was a barb on Gores CLAIM that he invented the internet. Do try to keep up, won't you.
  9. Sorry unlike you I don't have a giant walrus tash that gives me super brain power.
  10. joneog


    It's almost like they're trying to lose money.
    #10     Aug 5, 2011