Will US Postal Services default?

Question Details

Will US Postal Services default?

Asked by:

kruijs in Business » Results
Settled on 01/15/2013 07:54 Settled by

kruijs

Winning option:No, or after 2012 For the cash-strapped U.S. Postal Service, the cost of being ignored by Congress means that it will be on the brink of bankruptcy. For the American public, it could result in cutbacks on mail delivery. For postal employees, job cuts.

The postal service wouldn't say exactly which day its money runs out. But a November financial report warned that the agency will have about $1 billion in cash during one particularly tough period in March -- barely enough to keep the agency running for four days.

http://money.cnn.com/2013/01/11/news/economy/postal-service-fiscal-cliff/

Predictions

Yes, during 2011

Yes, during first half of 2012

Yes, during second half of 2012

No, or after 2012

Background

The USPS is facing a second straight year of losses of $8 billion or more. A decline in mail because of the Internet and the loss of revenue from advertising amid the economic downturn have taken a toll on the agency.

Postal officials say they will be unable to make this month's $5.5 billion payment to cover future employee health care costs because the agency will have reached its borrowing limit and doesn't have enough cash.

Calling the situation "serious," Donahoe told The New York Times, "If Congress doesn't act, we will default."

http://www.cbsnews.com/stories/2011/09/06/national/main20101961.shtml

Find similar: us postal service, default