Interesting article on the problems facing the postal service. Mail volume is declining drastically and fixed costs businesses, like the mail, are really, really tough when utilization falls. They tend to fall off a cliff because the marginal unit is the most profitable one.
Raising prices and/or layoffs are unpopular so the USPS is a little stuck. I'm sure there are people out there who think the system is outdated, but I think it's pretty neat that USPS exists and I think it still serves an important democratic function.
As I read this, one thought popped into my head. What if you could do a Leveraged Buyout of the USPS? What would it go for? They did $67 Billion in Revenue last year. In this alternative world where an LBO of USPS is viable, people would be falling all over themselves to do that deal. There's still a lot of value there. Hopefully the USPS can right the ship.
