US Post Office about to declare bankruptcy

From the WSJ:
While lawmakers continue to fight over how to fix the ailing U.S. Postal Service, the agency's money problems are only growing worse. The Postal Service repeated on Wednesday that without congressional action, it will default—a first in its long history, a spokesman said—on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn't likely, as the House prepares to leave for its August recess. The agency said a default on the payment, for 2011, wouldn't directly affect service or its ability to pay employees and suppliers. But "these ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers," said spokesman David Partenheimer. The agency says it will default on its 2012 retiree health payment as well—also roughly $5.5 billion, due Sept. 30—if there is no legislative action by then. . . .

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Blogger Pondering Stuff said...

Here is a funny joke I saw about he post office getting corporate sponsors, http://ponderingstuff.com/2012/11/25/corporate-sponsors/

11/25/2012 11:23 AM  
Blogger Irene Jennings said...

The postal service is the only remaining private communication. Legally speaking, it's actually still pretty hard to look in people's mail. And it's a logistical impossibility to look at it all. As opposed to electronic communications, which are all recorded and/or monitored. So the end of the post office means the end of any American's access to truly private communication. I'm left wondering if that isn't the main purpose here.

By: Bankruptcy Attorney Renton

11/29/2012 12:48 AM  

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