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USPS posts $3.5 billion loss as mail volume plunges
CNN ^ | August 5, 2010 | Hibah Yousuf

Posted on 08/05/2010 9:41:55 AM PDT by Zakeet

The U.S. Postal Service reported a $3.5 billion loss in its most recent quarter Thursday, as mail volume plummets and retiree health care costs mount.

The USPS, a self-supporting government agency that receives no tax dollars, said operating revenue declined 1.8% to $16 billion during the fiscal 2010 third quarter compared to a year earlier, while operating expenses spiked 4.2% to $19.5 billion.

The quarterly loss was the fourteenth in the last sixteen quarters, the postal service said.

"A significant portion of USPS losses in the past few years has been due to an unprecedented decline in mail volume -- down more than 20% since 2007," the USPS said in a statement. "The replacement of letter mail and business-transaction mail by electronic alternatives continues to cause downward pressure on mail volume."

"Securing the fiscal stability of the Postal Service will require continued efforts in all of these areas, as well as further review of retiree health benefit prefunding," said postmaster general John Potter.

"It also will require that the Postal Service gain flexibility within the law to move toward five-day delivery, to adjust our network as needed, to develop new products the market demands, and to work with our unions to meet the challenges ahead," he added.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: economy; losses; postal; postoffice; usps
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To: Republic of Texas
They "borrow the money". With tens of thousands of buildings and a vast number of vehicles they can simply pledge assets.

In some periods they've borrowed directly from or through the Treasury. At other times they've sold bonds. Sometimes they've paid down mortgages all over the place, and then borrowed against those assets later on in the cycle.

They usually have a surplus in the early part of any new rate cycle so they have cash resources available to cover costs later on as costs exceed revenues.

81 posted on 08/05/2010 11:52:23 AM PDT by muawiyah
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To: muawiyah

Do you know Willie Green? Y’all have a lot in common?


82 posted on 08/05/2010 11:55:15 AM PDT by Republic of Texas (Socialism Always Fails)
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To: Zakeet

Isn’t their solution is to cut one day off from delivery but keep paying the employees the same?


83 posted on 08/05/2010 11:57:18 AM PDT by VeniVidiVici (It's easy being a communist when you're rich.)
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To: Republic of Texas

Over the period of years when I worked for Post Office Department/USPS, there were probably over 3 million people came and went as employees. I might well have met a Willie Green ~ but the name doesn’t ring a bell at the moment.


84 posted on 08/05/2010 11:57:27 AM PDT by muawiyah
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To: norraad

Netflix is shifting more and more to streaming, so even they won’t save the Post Office...


85 posted on 08/05/2010 11:57:56 AM PDT by PhatHead
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To: muawiyah

At least you announce the reason for your bias. No, Willie is a train lover here, a Socialist through and through. He loves trains, as long as someone else pays for them.


86 posted on 08/05/2010 11:59:45 AM PDT by Republic of Texas (Socialism Always Fails)
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To: Hoodat
Think how much worse it would be for them without Netflix.

You mean how much worse it will be, once Netflix shifts everything to streaming and concedes the physical disk business to Redbox...

87 posted on 08/05/2010 12:00:50 PM PDT by PhatHead
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To: Republic of Texas
USPS is a user fee financed operation. It's not like the railroads at all.

I have a plan for total privatization on my computer somewhere. First thing that happens is you have to go farther to get the mail you don't like, and no, the users ~ that is "the senders" ~ are paying for the service ~ so the recipients will still not get a choice in what is delivered.

Time to make money!

88 posted on 08/05/2010 12:02:14 PM PDT by muawiyah
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To: Zakeet

Remember when he compared health care to the post office?

We are SUNK!


89 posted on 08/05/2010 12:05:58 PM PDT by Munz (All tyranny needs to gain a foothold is for people of good conscience to remain silent.)
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To: muawiyah

Lol.


90 posted on 08/05/2010 12:08:24 PM PDT by Republic of Texas (Socialism Always Fails)
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To: jpl

“I suspect that if it weren’t for all the junk we get that we don’t want, most of us would get virtually no snail mail other than maybe a couple of monthly bills.”

You’re right on the money there. I get a ton of mail, and maybe there’s on average one piece a day that is something actually meant for me (occassional greeting cards, and the few bills I don’t get electronically).

Seems like rather than raising first-class mail postage rates, they need to raise the rates of what they charge for bulk mail (that might also help cut down on all the darn catalogs and requests for donations that clog my mailbox).


91 posted on 08/05/2010 12:22:39 PM PDT by The4thHorseman
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To: muawiyah

Not really, since all we normally get is junk mail, and we’d feel no need to pick it up.

Even if we did have to, it’d be thrown away there, increasing their “trash” cost.

And, if no bins were offered, I drop it on the floor.


92 posted on 08/05/2010 1:38:58 PM PDT by benewton
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To: muawiyah; SpinnerWebb
I suspect you live in a different century

USPS has a government mandated monopoly on mail delivery and a governance model that allows them to raise rates whenever they deem it necessary.

Seems to me that a self-supporting government agency shouldn't need to have a bill passed (HR 2918) that allows it to postpone required payments into their pension plan ($4 billion worth) just so they can keep their head above water.

They also went fro $0 debt in 2005 to $10.2 billion on 2009 (out of a statutory limit of $15 billion) and racked up another 3.5 billion in losses in the last quarter alone.

Self supporting indeed.

Your profile informs me:

After 38 years with USPS I retired just over 6 years ago

Tells me all I need to know.

time to take your shots old-timer

Don't mind if I do ..

93 posted on 08/05/2010 1:49:32 PM PDT by tx_eggman (Liberalism is only possible in that moment when a man chooses Barabas over Christ.)
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To: benewton
Armed guards are cheaper than letter carriers. The delivery unit can be guarded 24/7 to prevent clutter if need be.

Imagine being shot down for spilling the ADVO pack. Oh the humanity.

94 posted on 08/05/2010 1:49:56 PM PDT by muawiyah
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To: tx_eggman
The complaint is the $5 billion is being paid to an entity (united states government) that's already collected $75 billion too much.

Sounds like a working argument to me ~ and so typical of the government.

95 posted on 08/05/2010 1:52:30 PM PDT by muawiyah
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To: tx_eggman
BTW, USPS doesn't have a government mandated monopoly on mail delivery ~ rather, the Congress once passed a law establishing a "letter mail monopoly". That's why others, e.g. UPS, FedEx, Sears and Roebuck, Home Depot, and so on can and do delivery stuff including manifests (but not bills).

The letter mail monopoly covers letters as the general public imagines them, AND checks. It does not include non-communicative correspondence ~ handbills, broadsides, newspapers, magazines, and so on.

The Postmaster General is authorized to grant exceptions ~ which is why you have express letters handled by FedEx and UPS (and others).

At the same time for purposes of security the law allows the Postmaster General to require that intended recipients of mail maintain a receptacle not available to others. Technically speaking, you are the guy who keeps private delivery services out of your mailbox, not the post office.

96 posted on 08/05/2010 2:05:02 PM PDT by muawiyah
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To: Republic of Texas
How many times have they been short and needed a cash infusion from the Government? Exxon operates the same way. Huge profits one year fund R&D for the next several years. The difference? Exxon never needs a bailout from the government.

I guess it depends on your definition of "bailout," a word that's tossed about all too easily these days.

Your example of Exxon is a poor one. While I don't have the exact by-corporation numbers, Exxon and other oil companies received over 550 billion with B worth of subsidies through tax-credits and other tricks of the trade.

That number was from ALL govt's, not just the US, but you can be safe knowing that Exxon receives many billions of dollars each year in various subsidies and tax breaks.

Now, one could argue that these are necessary and not an issue.
97 posted on 08/05/2010 2:05:12 PM PDT by whattajoke (Let's keep Conservatism real.)
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To: Zakeet

If I’m not mistaken, their prices have gone through the roof. Same as post services everywhere. And now they’re surprised?


98 posted on 08/05/2010 2:20:18 PM PDT by Hardraade (I want gigaton warheads now!!)
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To: edcoil

I do.


99 posted on 08/05/2010 2:21:26 PM PDT by Former War Criminal (My senior Senator [who served in Vietnam and Rhode Island] said so.)
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To: Wiggins

UPS stores are great. That’s where I go if I have to send a package or (very rarely) fax something. Convenient, quick and courteous. I like my mailman too don’t get me wrong.


100 posted on 08/05/2010 2:23:26 PM PDT by DManA
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