WASHINGTON (AP) - 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 _ 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 budget year on Sept. 30.
Unless Congress intervenes, the Postal Service said, the agency won't have the cash for certain payment to the government, such as billions for a trust fund to provide health care benefits for future retirees.
8 comments:
This is what happens when you let the Government run things.
And Obama wants to take over health care. What does this tell you. They cant even run the postal service without running it into the ground. Social Security is broke from being borrowed from and medicare and medicaid are broke. Way to go you wonderful mass of politicians. What else can you think of to create and make it go broke.
The unions strike again and run another business into the ground.
If my business was that broke I would have to close up shop. But they have the tax payers to suck more money to be wasted. Why do we need the post office??? All I get is junk mail..everything else is done on the cdomputer.
Well if you see the commercials they are giving away the boxes for free to ship items in up to 75 lbs. All you have to do is ask for them. A box big enough to ship 75 lbs costs something to produce. Just imagine how many of these have been given away. You don't get free boxes at UPS or Fed Ex. They aren't broke. Just goes to prove the government can't run a business.Never has been able to and with the idiots in office now will never be able to. Spending money we don't have to fund things we don't want or need.
do you ever wonder why the usps continues to lose millions while fed-ex and ups MAKE millions each year ? its simple GOVERMENT SPONSORED UNIONS which should be outlawed dont care if they make a profit ,just give me what i want _
404-Also, gov't enforced monopolies need to be eliminated. Without the gov'ts heavy hand in stifling courier competition, the USPS would've closed it doors by now.
Big incomes, large retirement package and reduced revenue results in your screwed.
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