Insolvent US Postal Service Loses Whopping $5.2 Billion In Third Quarter, 70% Higher Than Year Ago

Tyler Durden's picture




 

Update: USPS STILL EXPECTS TO RUN OUT OF CASH IN OCTOBER - well, this is the bailout request that Draghi was waiting for. All your ECB - get involved.

The epic collapse of one of the most bloated government institutions continues at a ridiculous pace. From Bloomberg:

  • U.S. POSTAL SERVICE LOST $5.2 BILLION IN THIRD QUARTER
  • POSTAL SERVICE LOSS Q3 COMPARES WITH $3.1 BILLION LOSS YEAR AGO
  • POSTAL SERVICE 3Q REVENUE FALLS TO $15.6 BILLION FROM $15.8B
  • POSTAL SERVICE `LIQUIDITY CHALLENGES' REMAIN IN 2013
  • POSTAL SERVICE MAIL VOLUME FALLS 3.5 PERCENT IN THIRD QUARTER
  • POSTAL SERVICE WILL CONTINUE TO PAY EMPLPOYEES, SUPPLIERS

And it gets better:

  • POSTAL SERVICE LOSS INCLUDES SKIPPED PAYMENT TO TREASURY - in other words the taxpayer bailouts of the USPS have begun... and the loss would have been even bigger.

The punchline:

  • POSTAL SERVICE WILL `NEVER' CEASE DELIVERING MAIL: MARSHALL

Of course: why ever stop doing something that is losing tons of OTHER PEOPLE'S MONEY. Not like that money is your own.

Finally:

  • USPS has said it would run out of cash in Oct., assuming it wouldn’t make $11.6b in required payments to the U.S. Treasury for future retirees’ health-care costs
  • Congress recessed this month without passing legislation Postal Service said it needs to survive

Perhaps it is time to consider a Solyndra-USPS merger: who wouldn't want to see solar powered stamps?

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Thu, 08/09/2012 - 09:08 | 2690581 fiftybagger
fiftybagger's picture

Will give a whole new meaning to the term "going postal"

http://www.brotherjohnf.com/

Thu, 08/09/2012 - 09:14 | 2690609 Pladizow
Pladizow's picture

Thats fucking postal!

Thu, 08/09/2012 - 09:18 | 2690623 malikai
malikai's picture

Subsidize that Junk Mail, suckers!

Thu, 08/09/2012 - 09:25 | 2690660 FEDbuster
FEDbuster's picture

The Postal Service post bail out will be re-named and re-branded, "Government Mail, the Other GM".

Thu, 08/09/2012 - 09:30 | 2690697 Skateboarder
Skateboarder's picture

All letters will be open and read "for your safety!"

Thu, 08/09/2012 - 15:49 | 2692023 Cadavre
Cadavre's picture

Sometimes one easily gets the sense that zero brained iFad dweebs, that didn't have too much to begin with, burned out their last lone strand of gray matter shopping their latest and greatest 4G iBling for dim wit, but not quite ready for prime time, but never clever, one liners, so de gang at ZH won't nitice their limp wristed blog-tyoing-style.

1) The United States Postal Service, (USPS), is the only federal  function authorized and signed by the founders, in the original Constitution.

2) United Parcel Service's (UPS)  lobbyists have been sending choir boys to the hats rooms of the house and senate with promises they'll find shiny quarters in the holed pocketed pin striped pantaloons worn by overpaid, yet perfectly corrupt, B list CSPAN character actors. Probably already loaded up de CSPAN crroners with bunches of UPS warrants too.

3) Since the USPS is hard coded into the original constitution, the kiddy lovers on da hill be storying up consent so da dull witt's chewing a wad of iCurd in the sheeple haircut coral tink da CSPAN fiolly Whores are counting dere pennies. Soon to be followed by mainstream 5th column queens, and th always manufactured surveys storying it up 24/7 on the hypno tube.

4) To top-off Marine gas tanks for one f*cking week in Afghanistan,  costs more than the USPS's "reported" budget shortfall.

5) The only federal employees that give any of us a sense theat we are still Americas are those knee socked US Postal workers putting your "pad enhancement" meds in the mail box.

6) The "Cram me Hard" and "Think beyond the corner of da Spreadsheet" Crammer was schlepping consent for da little ruse underlying de thin dime a dozen paste up one-liner you be glowing about and almost raised the stiffy-worm enough for you to be a pitcher - A F*CKING YEAR AGO!

WHAT CRAMMER PREACHES IS NEW TESTAMENT FASCISM

Have you tried Harretz or Little Green Footballs? Dere be lotz more city park bathroom hookups dere dan here to slam ur rear!.

They would even pretend you be clever, as long as you play de pliant catcher and gotz a purse full-o-K-Y lover-boy-lubricant.

You be swooning through da teeth and over de gums into da tummy yummy yum yum all nite long!

UPS will open your mail because they not be bound by Federal Law. USPS cannot open mail with out a court order.

Turn off the Olympics and tink, me little 4-G queen bato! The whores on the hill are starving Americans and their Postal Service for black-bribe-bags full-o-fiats, insider scoops on de next bestest profits-o-genocide play and wide eyed preschoolers with soft hands.

So - yu still be tinking you be da clever one-liner troll de-jour? Well, do ya, punk?

Thu, 08/09/2012 - 09:47 | 2690768 Tijuana Donkey Show
Tijuana Donkey Show's picture

Merged, and delivered via Chevy Volts.....

Thu, 08/09/2012 - 10:11 | 2690891 camaro68ss
camaro68ss's picture

Through rain and snow, debt and insolvency, the mail man will always deliver.

Thu, 08/09/2012 - 15:15 | 2691903 FoeHammer
FoeHammer's picture

Newman : Work ? It’s raining .
George : Soooooo
Newman : I called in sick . I don’t work in the rain .

Thu, 08/09/2012 - 10:19 | 2690933 Hugh_Jorgan
Hugh_Jorgan's picture

Nah. Everyone expects mail service and the Federal Government loses $5B in the cushions of the couch when they sit down. The inverse "Midas touch", gotta' love Government.

Thu, 08/09/2012 - 12:04 | 2691364 El Oregonian
El Oregonian's picture

As a retired postal worker I'll tell you the reasons the USPS is going down the crapper.

1) Electronic mail

2) Bloat (people demand mail delivery across the US to every address)

3) Regardless of actual cost of delivery i.e. fuel, maintenance, taxes, rents.

4) .46 cent delivery of letter anywhere in the country and U.S. possessions around the world. Congress sets rates instead of the market.

5) One of the cheapest mail service providers in the world.

6) Convenience of cell phones.

Don't get me wrong, there are major structural problems that need addressing but try to remember the last postal strike.

Congress controls the purse strings and therefore controls capital expenditures. Granted, managers are paid to manage but when you work for a quasi-governmental agency without the ability to set rates, as per market demands, you'll have a system that is especially vulnerable to congress edits that have more to do with lobby persuasion than actual supply and demand pricing.

In 1996 I saw the potential of the parcel market expanding due to a new online auction site: eBay.

Well, trying to convince management of the potential was beyond frustrating (bloat) but once they realized UPS and FedEx were making inroads into their parcel business they got on board.

In the end, nimble entrepreneurs will fill the voids and charge what the market will bear. Unfortunately, that birthday card from grandma might cost $2.00 bucks, but hey, how many birthdays does one celebrate with how many siblings, aunts, and grandparents?

Personally, it is a dieing part of our history. Relegated to telegraph, cross-country passenger railroad, or carbon paper and spools for typewriters.

In the end, if you don't have a pot piss in then you learn to piss outside.

Thu, 08/09/2012 - 12:31 | 2691464 Rick Masters
Rick Masters's picture

Hey El Oregonian, I don't know why one person would give you a thumbs down. You're absolutely right. The thing is a don't think a lot of people understand the Postal Service a quasi-gov't agency, it's not like the dept. of education or your state's DMV, and people think it is. It's a private entity whose rules are governed by congress but makes it owns profits and that's how it operates, right? Correct me if I'm wrong. The US Postal Service is the best in the world and people may think mail is a thing of the past but it isn't. You can have anything delivered via the PS. I used to run an eBay business and if I used FedEx or UPS by costs would've doubled. The PS never once messed up a single order and there were thousands. Go figure, UPS was much slower. I lost stars cause of it. And those stars are the equivalent of gold on eBay and determine if people buy off you or someone else. And since I sold all my goods two cents lower than everyone else, and at first, at half price, in order to crush competition, without the PS, my biz woulda failed.

Thu, 08/09/2012 - 11:01 | 2691116 Ruffcut
Ruffcut's picture

The rub is.....

Wait for it....

Aging pensioners and the fucking healthcare costs.

My wifes family hellcare plan is $18,000 a year.

No one can afford that shit. Hospitals like the hilton, granniy's hip replacement, poison pharma which is marked up to the fucking moon.

Simple math at work.

Thu, 08/09/2012 - 09:09 | 2690582 lizzy36
lizzy36's picture

Is there a Postal Whale?

You didn't build that business the US government did.....see what a bang up job they did!

Thu, 08/09/2012 - 09:21 | 2690641 AU5K
AU5K's picture

Time to shut it down.  $100 per taxpaying taxpayer (ie. the 50% that actually pays federal taxes) is not worth it for 3 months of service.

Thu, 08/09/2012 - 09:33 | 2690710 MachoMan
MachoMan's picture

hmm...  sounds like I need to use the shit out of it if it's costing me that much to prop this bitch up.

Thu, 08/09/2012 - 12:46 | 2691483 Rick Masters
Rick Masters's picture

Hey idiot partisan show me the numbers that the right kind of people who actually pay federal taxes, fuck you by the way, pay $100 per...month, year, lifetime, per what? You have the Web equivelent of foot-in-mouth disease. Post comment insert ass, by that I mean your face. Also, how do we replace it? with what? Yeah let's pay $20 to deliver an envelope via UPS. Great! Go suck some CEOs dick, since your already on your knees. SLAVE.  That's you. The PS is a private agency that generates its own money. You people, by that I mean republican partisans and your ilk on the other side who defend obscene union wages, i.e Democrat parisans, are the PROBLEM. Every single one of you on both sides. Now, Ron Paul is gone and his son is obviously not the same--at all.

Thu, 08/09/2012 - 15:11 | 2691890 Totentänzerlied
Totentänzerlied's picture

This is the dumbest, most off-topic, most needlessly and baselessly rude, most inane and insane comment I've seen in quite some time, and I read AnAnonymous religiously.

Are you an employee of the USPS or do you shill for fun?

Thu, 08/09/2012 - 15:48 | 2691995 Rick Masters
Rick Masters's picture

Oh my heavens, gosh gee willigers, did I offend thee? Oh, I do truly apologie my kind sir as i thought I was on a Web site called Zerohedge where the owner himself uses a pseduonym, Tyler Durden, of a movie called Fight Club, ya know, they pummeld each other for fun. My mistake. Apparenlty rudeness is not tolerated on this here board, maybe the moderator should remove my comment so no one else's little feelings get hurt. BTW, I truly am sorry that your panties got in such a bunch, must be hard with all that sand in your vagina. Oh wait, am I allowed to point out that you are the proud owner of a vagina? But I must disagree. How is posting about the post office off-topic on a post aboput the...wait for it...post office. Great ad hominem attacks miss, but please, refute my arguments. point by point. Or is it reputiate, as your Queen says. BTW, how many corporate scum bags and union mebers does it take to change a light bulb. Answer: none. They get someone else to do it for two bucks per hour and no bathroom breaks while they do nothing productive. Oh yeah, fuck you partisan scum. THIS IS SPARTA! Now go bake some cookies and get fucked. How dare i post a post about the post office on an article about the post office.

PS: The original comment said it costs $100 per (?????) for actual tax payers for three months of service. The post office generates its own income from its profits and thats what it uses for operating costs. I think it is pretty awesome for less than 50 cents I can send a letter to a friend in Cali. And yes some of us still wirte letters and I'm 30. Then there are Christmas cards. Birthday cards. Notices that must be mailed by law,. How do you replace it without putting more hidden taxes on the middle class. EXPLAIN HOW? Call me all kinds of names I dont care unlike you, I just want an explanation on what happens when you fucks shutter the USPS, as it sounds like thats what you want.

Thu, 08/09/2012 - 09:10 | 2690586 Incubus
Incubus's picture

When will you turkeys learn?  Despite all evidence to the contrary,  you cling to your absolutes and formulas in attempts of rationalizing civilization.  Being broke is only a state of mind.

Thu, 08/09/2012 - 09:46 | 2690760 OneTinSoldier66
OneTinSoldier66's picture

Hey, Ben, is that you?

Thu, 08/09/2012 - 10:28 | 2690978 Almost Solvent
Almost Solvent's picture

Ben & Obama would love for QE3 to invlove a $25,000 refundable credit for every man woman and child in the US, legally or not.

 

Just file a return and claim your 'Freedom Money Refund'

Thu, 08/09/2012 - 13:54 | 2691663 A Nanny Moose
A Nanny Moose's picture

Can I get that with a side of Freedom Fries?

Thu, 08/09/2012 - 22:04 | 2692868 Rick Masters
Rick Masters's picture

well it won't be waffle fries from chi-fil-a lol but i don't think anyone should eat there fro one quasi political reason: fast food is tasty and like anything that creates a dopamine rush comes with drawbacks, in this case, healthcare costs related to obesity and more eating like type II diabetes. The guy can donate to all the groups he wants but maybe he should create healthier food...maybe his is more healthy than say mickey dees, but that's not saying much. I just think he should keep his politics to himself...its good business

Thu, 08/09/2012 - 10:16 | 2690915 ffart
ffart's picture

When will you turkeys learn?  Despite all evidence to the contrary,  you cling to your absolutes and formulas in attempts of rationalizing civilization.  Being a forum poster is only a state of mind.

Thu, 08/09/2012 - 09:10 | 2690588 BeetleBailey
BeetleBailey's picture

The Cunts in CONgress were too busy naming post offices.....

The last straw is giving access to the public's mailboxes to UPS and Fed Ex.

These boobs at the USPS have a monopoly on them - and they lose money.

A bright and shining example of why GOVERNMENT SUCKS!

Come on Max and MDB..explain this to us...give us your big government shit reasons......

Thu, 08/09/2012 - 09:30 | 2690696 scatterbrains
scatterbrains's picture

let me try,  because once they raise taxes on ebay/amazon sales it will boost buisness... er.. wait let me rethinkit.

Thu, 08/09/2012 - 09:11 | 2690591 Jason T
Jason T's picture

mail delivery man is a good example of wage differences between say the US, Mexico and China.. be it in terms of gold based on the exchange rate and then question why one get a far higher salary than the other?  

higher productivity was one legitimate answer..  

as we continue to enter the world of that "giant sucking sound" and our wages go down as theirs go up until we reach an equlibrium.  Well said Ross Perot in 1992.  

Thu, 08/09/2012 - 10:43 | 2691041 bigwavedave
bigwavedave's picture

Yep. That is the only 'funnymental'

 

I hired a full time admin staff today. Female 20 years old. Diploma. Last job was a legal eagle. She joined for $70 a month + bonus.

Thu, 08/09/2012 - 15:49 | 2692025 BooMushroom
BooMushroom's picture

Unfortunately, efficiency has not touched the most inefficient part of mail delivery - the last mile. The US post office has made huge innovations in sorting and processing, and even their in-office kiosks. But they still have people physically carrying armloads of mail, on foot, door to door to door. Until they can give that up 100%, or close to it, they are stuck in the efficiency department.

Thu, 08/09/2012 - 09:11 | 2690592 Midas
Midas's picture

It is interesting this article was posted just below another article about disinformation.  Does revenue down from 15.8 to 15.6 billion sound all that bad?

Think for yourself. 

Thu, 08/09/2012 - 09:21 | 2690644 Race Car Driver
Race Car Driver's picture

It really doesn't matter how much they're 'down' - wheather it be 200M or 200B - the simple matter is they're fucking broke and can't run a profitable monopoly.

Disinfo, indeed.

Thu, 08/09/2012 - 09:27 | 2690681 Midas
Midas's picture

I think some of this data was mis-interpreted, but no source is given and I haven't been able to find it on my own.  USPS only has second quarter financials posted.  Does anyone know where this data comes from?

Thu, 08/09/2012 - 09:51 | 2690787 smithcreek
smithcreek's picture

Thanks for the compelling argument dipshit.

Thu, 08/09/2012 - 10:25 | 2690965 Midas
Midas's picture

Easy tiger--I just wanted to see the data because it doesn't match the trend of the USPS losses.  They have been losing around 2 to 3 billion a year, and this article makes it sound like one quarter.  I think they have included all the pre-pay hocus-pocus even though they say they didn't. 

Rather than join in the two-minute hate I am trying to get informed--tough to do without the data. 

Thu, 08/09/2012 - 10:12 | 2690894 mick68
mick68's picture

Just a note, that 200m decrease in the USPS's Q3 is only one quarter, therefore if that happened every quarter they'd have an 800m decrease in revenue.
I think that's pretty significant.

Thu, 08/09/2012 - 10:29 | 2690980 Midas
Midas's picture

I'm not saying business is booming, but with revenue of 60 billion a 800 million decrease in revenue could be a manageable decline.  I know they shed around 30k employees every year, so that reduces the expenses quite a bit.

Thu, 08/09/2012 - 10:02 | 2690848 mess nonster
mess nonster's picture

Think for yourself. The herd mentality at ZH masquerades as independence- disinformation on an organic level.

The PS must make these giant balloon payments into a HEALTH CARE FUND. Huh? What about ObamaCare? What about insurance companys?

Then, the PS has been required, by the same politicians who work for Wall Street, to give up its profitable delivery and stamp monopolies to UPS FedEx and Pitney Bowes. Huh?

I think the PS is being set up to fail, then said carcass to be picked over by Wall Street.

Truth is, if you want privacy, MAIL A LETTER. Got sdomething sensitive to say, and you dont want anyone but your intended recipient to receive the message? SEND A LETTER.

Funny, the Postal Service did fine as a gov't agency, right up until the 70's. Something MADE it unworkable. Congress and its Wall Street handlers.

 

 

 

Thu, 08/09/2012 - 10:32 | 2690993 BlueCollaredOne
BlueCollaredOne's picture

Or you could encrypt

Thu, 08/09/2012 - 12:39 | 2691485 Lord Koos
Lord Koos's picture

The NSA's computers can crack that shit now.

Thu, 08/09/2012 - 11:51 | 2691321 Baptiste Say
Baptiste Say's picture

"Funny, the Postal Service did fine as a gov't agency, right up until the 70's. Something MADE it unworkable. Congress and its Wall Street handlers."

By the mid 70s FedEx was founded, and UPS went nation wide. Fast forward 2 decades and email was ubiquitous, this is why USPS is failing, because insulated from market forces they've become dinasours.

The heavily unionised labour force doesn't help but it's not like USPS has been setup to fail, it's just that nothing else can be expected with government running a business.

Thu, 08/09/2012 - 23:21 | 2693009 Revert_Back_to_...
Revert_Back_to_1792_Act's picture

Just two years after JFK was gone...

Coinage act of 1965.

http://www.presidency.ucsb.edu/ws/?pid=27108

Ended 172 years of dollar being defined as a weight and measure of silver.

Read the book in my profile.

Kennedy knew what he was talking about.

http://www.youtube.com/watch?v=FnkdfFAqsHA

 

Thu, 08/09/2012 - 15:15 | 2691901 Totentänzerlied
Totentänzerlied's picture

You make no sense. And you are wrong, to boot.

http://www.lewrockwell.com/orig4/spooner3.1.1.html

Read it or don't, I care not. "Think for yourself".

Thu, 08/09/2012 - 23:17 | 2692997 Revert_Back_to_...
Revert_Back_to_1792_Act's picture

The US Post Office was one of the first seats of government established in the United States. 

People need to think of how the Post Office functioned during the civil war, for selective service, how important mail delivery is. Service of process, etc.

 

Thu, 08/09/2012 - 09:14 | 2690607 monopoly
monopoly's picture

So, its run like a private corporation until they have to make decisions that effect politicians future. They need to file for bankruptcy. Void all contracts. Increase worker health premiums, stop paying premiums for them after they retire, reduce pay and benefits, and fire X amount because their business model has changed. Then they could stay in business, and with the proper cuts and management, be profitable. Lets face it guys, we can adjust to no delivery on Saturday, Canada has been doing it for years. And yes rural Post Office's would have to close and yes it would be a hardship on the elderly in small towns who have nowhere to go, but it is fact. PO is broke. But no, we will not do anything before the election. Cannot upset voters until After November. 

On and on it goes. 

Thu, 08/09/2012 - 09:32 | 2690705 FEDbuster
FEDbuster's picture

Actually the transition has started.  New hires make less than half of legacy postal workers with no benefits.  They will have to figure out a way to screw the old union workers out of the retirement benefits they were promised, but that should be easy given the current situation.

Thu, 08/09/2012 - 09:49 | 2690775 Bobbyrib
Bobbyrib's picture

Do they conitune to overfund their retirement fund? It's funny that the same tools( originally had fools) who voted for overfunding the postal workers' retirement are the same ones who do not want to close their rural post offices.

Thu, 08/09/2012 - 09:51 | 2690792 youngman
youngman's picture

You just fixed it in 30 seconds..it is that easy....cut expenses..labor costs..pensions...healthcare....some services...but it gets er done..

 

I bet they gave out millions in raises this year though....can´t stop that ya know...wink wink...

Thu, 08/09/2012 - 10:14 | 2690907 aztrader
aztrader's picture

You nailed it.  Trash the unions, disolve the pensions and fire the dead weight.   We need a solvent post office because if all shipping were to be handled by UPS and Fedex, most retailers would go out of business due to the costs.   They need to quit trying to be everything to everybody while at the same time being handcuffed by the union.

Thu, 08/09/2012 - 10:15 | 2690908 aztrader
aztrader's picture

You nailed it.  Trash the unions, disolve the pensions and fire the dead weight.   We need a solvent post office because if all shipping were to be handled by UPS and Fedex, most retailers would go out of business due to the costs.   They need to quit trying to be everything to everybody while at the same time being handcuffed by the union.

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