Have we learned nothing? The Wall Street Journal indicates that there may be a coming USPS bailout. According to the article found here, the United States Postal Service reported a loss of nearly $2.2 Billion dollars in the first quarter this year. It is further expected that the USPS will lose $42 Billion dollars over the next four years.
If this was a corporation, the management would be replaced, the labor force would be reduced and the business would be contemplating bankruptcy or a buyout. However, instead of bankruptcy or a buyout, the federal government is contemplating continuing the poor business practices, allowing the management to remain in place and financing a bailout of the USPS.
As a bankruptcy attorney, it is my duty to make my clients aware of the reality of their situation. I try to explain to my clients what their options are and to give good business advice. It is unfortunate that there does not seem to be anyone advising the federal government about the reality of the situation with the USPS, but I suppose, they prefer just to print money, rather than confronting reality and therefore moving the harm to the citizens of the United States rather than making difficult decisions on their own.
Thank you for taking the time to read this post by Tempe, Arizona bankruptcy attorney Glenn W. Roethler. The views expressed in this article are his alone and do not represent the views of the other members of Greeves, Price & Roethler, PLC.