1. Broke

    Postal Service Nears Default

    Postal worker Daryl Ha pushes his cart up a hill while delivering mail in the North Beach area of San Francisco, Wednesday, May 11, 2011.   The Postal Service is continuing to hemorrhage money, reporting a loss Tuesday of more than $2 billion over the first three months of the year and warning it could be forced to default on federal payments.  Such a default would not interrupt mail service to millions of Americans, but it could further hobble an agency struggling with a sharp decline in mail because of the Internet and a tough economy.  (AP Photo/Eric Risberg)

    Eric Risberg / AP Photo

    The U.S. Postal Service is so low on cash that it may have to shut down entirely this winter—unless Congress gives it a cash injection. The USPS will not be able to make a $5.5 billion payment due this month as it struggles to erase its deficit, which will hit $9.2 billion this year. “Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, tells The New York Times. “If Congress doesn’t act, we will default.” U.S. law forbids the USPS to take many of the steps it could to better its finances, like raising rates or selling things other than mail services. Donahoe is pushing major changes to help save money, including eliminating Saturday delivery, closing 3,700 post offices, and laying off 120,000 workers.

    Read it at The New York Times