Postal Service to default again (yawn)…

with one comment

It’s almost time for some more postal “default” news stories, and CNN Money has gotten the obligatory “insolvency” story out of the way almost a week early. The story has an interesting twist though- it rather matter of factly states the real reason for the so-called “crisis”:

The financial crunch is due to a law passed in 2007 that only Congress can fix. Congress ordered the prefunding of retiree benefits, as a way of easing federal deficits. Neither of the bills moving through Congress completely undo that mandate — they just prolong or delay it.

No failed business model? No bloated bureaucracy? Looks like someone at CNN isn’t following the script! The article even quotes NALC President Fred Rolando pointing out that far from running out of cash, the USPS has $44 billion stashed away already for the future retiree health benefits Congress is supposedly so worried about.

via Postal Service to default again (yawn)… – postalnews blog.

Written by Lisa.Bowes

September 27th, 2012 at 8:47 am

Posted in USPS

One Response to 'Postal Service to default again (yawn)…'

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  1. Very nice post! Thank you for writing this.

    Johan

    18 Dec 13 at 1:27 pm

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