The aftermath of the USPS defaulting on a $5.5B payment to the U.S. Treasury is relatively muted...


The aftermath of the USPS defaulting on a $5.5B payment to the U.S. Treasury is relatively muted as jittery politicians prefer to stay out of any action that could cut jobs in their district. Things could get rather interesting in October though, when the USPS could actually run out of money to fund ongoing operations and force companies to improvise. On watch: FedEx (FDX -1.0%), UPS (UPS -0.5%).

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Comments (8)
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    What the politicians should do..is let the Fed EX and UPS deliver mail...
    2 Aug 2012, 09:38 AM Reply Like
  • wigit5
    , contributor
    Comments (4356) | Send Message
     
    Yup it's time to let it go, and all those people working for the USPS I'm really sorry but your 'company' has failed to adapt properly and management has let you down not the US Taxpayers.
    2 Aug 2012, 09:42 AM Reply Like
  • Skier99
    , contributor
    Comments (73) | Send Message
     
    this is exactly what they should NOT do. Most people mail the monthly bills by first class mail. cost about $.70 per letter. Now you are saying they should pay $5 - $15 per bill?

     

    What they should do is work with the post office to sensibly restructure the service, looking at the cost/benefit of the junk mail portion, and allow rates to rise to an economic level. They should take a *mature* look at the pension / health care situation and make *mature* changes as appropriate. They should have done this months ago. Unfortunately, Congress is right now in the hands of ideologues who will not work on *mature* policies, so we small businesses and rural consumers in America are reaping the consequences.
    2 Aug 2012, 09:44 AM Reply Like
  • Stoploss
    , contributor
    Comments (1713) | Send Message
     
    those guy's are equipped to deliver mail, USPS is not.

     

    Im waiting until i can get rid of the mail box out on the street, as it is pretty much useless, since our mail only comes every other day if we're lucky.
    2 Aug 2012, 09:46 AM Reply Like
  • glssmrbl
    , contributor
    Comments (913) | Send Message
     
    That's exactly what should happen. Prices move up to cover the losses in volume. This move to internet destroyed this business a long time ago. And as usual the Fed waits until after 1,000 complaints by management before it even becomes breaking news!

     

    This needs to be revised and taken over by FedEx and UPS. This is way too much debt for it to be a big conversation now. Politicians don't care and neither does Wall Street. It's just another U.S. bill that goes unpaid as the so-called fiscal cliff (which is also a bunch of b.s.) gets near.
    2 Aug 2012, 11:40 AM Reply Like
  • sean.parmelee
    , contributor
    Comments (791) | Send Message
     
    I got a postcard recently from the USPS telling me that this is a very difficult time for them, and I may notice some changes, blah blah, but that "we are not supported by the taxpayer". Do they really think we're dumb enough to believe that? How many times has this happened now?
    2 Aug 2012, 09:40 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
     
    Too bad the USPS can't print money like the federal government. That would solve everything! Never run out of money again!
    2 Aug 2012, 09:44 AM Reply Like
  • Exquisite Decay
    , contributor
    Comments (270) | Send Message
     
    But in a way it can. It prints stamps; it gets the float from the sale of the stamps before they are used. Plus not all stamps sold are used. I do not know what percentage of stamps sold are never used but there are many collectors out there who buy sheets of newly issued stamps just for the purpose of collecting them. Then there are people like my late grandmother. When we were going through her things there was around $60 dollars worth of unused stamps; many issued in the '50s and '60s. They were of course still usable but their face value is not adjusted for inflation, so the USPS certainly made some money there.
    3 Aug 2012, 03:02 PM Reply Like
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