TFN eNews 08/06/2009: Without the post office, how will we get paid?
Published via e-mail broadcast on August 6, 2009
In today’s TFN eNews:
* The Postal Service is America’s future
* The problem with increasing margins
* You gotta problem with me?
Dear TFN Reader,
I am astonished to think that there is even one person in this nation that actually believes the “econophobic” politicos in Washington can do an iota of good for the nation’s healthcare system.
These reformists are obviously no fans of history.
Dare I mention Amtrak, Social Security, the Highway Trust fund, a national debt that won’t fit on my calculator, any DMV office, and Uncle Sam’s latest embarrassment, the Post Office.
All these examples work to prove one thing; the only thing our elected officials can run well is a political campaign.
And, oh boy, is the campaigning and smearing reaching new heights:
- The White House created an official “fishy” information hotline, or as some are calling it, an “enemies list.”
- Obama is back on his grassroots tour – for some reason his stops happen to be in the middle of the produce aisle at grocery stores (probably to keep comments from getting overheated).
- And Congress is burning another couple billion bucks in an effort to prop up Detroit (or Tokyo) and disrupt auto-industry economics.
Really, the last thing Obama and the healthcare-reform crowd want to see flashing across the headlines this week is the news the Postal Service managed to lose $2.4 billion in the last three months.
What’s their answer to the problem? Simple. Cut service from six days a week to five days a week.
Through rain, sleet or snow, but not on Saturdays and don’t come knocking before nine or after four.
Imagine what will happen when ObamaCare runs at a deficit.
Sorry… hospital’s closed. Try Canada. I heard they have room.
Of course, I am exaggerating (I hope).
We all know the only reason the Post Office is not rolling in the dough is because of some pesky economic contraption named competition.
Thanks to services that deliver faster and cheaper, like carrier pigeons and email, mail carriers are delivering 12.6 percent less so far this year than last year.
The post office is now delivering just 4.1 pieces of mail to each house, compared to 5.9 pieces per day in 2000. The 30% decline is steep but we can all help the local post office by signing up for one more coupon-filled Valpak.
With its healthcare proposal, the Obama administration won’t have to worry about competition. Washington will virtually make it illegal.
That always leads to great things… like Amtrak.
I have heard all sorts of arguments for and against cutting Saturday mail delivery, but probably the most poignant comes from Jo Ann Emerson, a Republican Congresswomen from Missouri.
She is fighting against five-day operations because she fears here constituents won’t be able to get their social security checks on Saturdays.
The quote from NPR:
“Emerson added that plenty of senior citizens in Missouri don’t have their checks direct-deposited. And if their Social Security checks are available on a Saturday, they want them delivered on Saturday.”
That pretty much sums up America today, doesn’t it?
*** Fortunately, not everything I write about is half-witted commentary. I reserve that for when the boss is out of town and asks me to cover for him.
More often than not, my daily pieces are on the subjects that help you maximize your investment money.
Over at the TFN site earlier today, I examined one of the leading ways companies have managed to beat analyst expectations during the latest earnings season.
While stocks have reacted quite positively to the news, in the end it is going to cause more trouble than it was worth.
Here’s a snippet of the article:
“The earnings figures released over the last month are absolutely hideous, scary really, yet Wall Street hails them as a sign of recovery and safety.
“Revenues are at a fraction of where they were this time last year, yet they beat analyst expectations.
“Earnings, if a company is lucky enough to find a profitable strategy, are down by figures like 80%, 90%, even 95%, yet shares are moving up. Investors figure even a couple of bucks in free cash flow is better than nothing.
“But what so many investors and even analysts are overlooking is where the surprising figures are coming from. According to reports like today’s dismal same-store sales figures, the extra cash is not from spend-happy consumers.
“Instead, companies are slashing headcounts, cutting services and doing absolutely anything they can to increase their margins. In other words, they are burning their house down to cut their electricity bill.
“It is great in the short term, but what about the long-term effects?
“A perfect example of the recent phenomenon comes today from HSN, Inc. (NASDAQ:HSNI), a.k.a. the Home Shopping Network.
“Shares of the couch-potato-friendly shopping channel are up by about 20% today on the news the company was able to cut costs and increase margins enough to squeak out a profit of $11 million even though revenues dropped by 8% during the quarter.
“For some perspective, this time last year the company reported a loss of $249.8 million.
“The comparison begs the question why didn’t the company cut costs last year when it was hemorrhaging cash?”
Read the full article here.
*** You gotta problem with me? Need a caring ear to talk to? We’ve got you covered.
Here at TFN customer service is an absolute top priority for us. After all, you are the folks that make it all happen. Because of that dedication, we recently expanded our team and our services to include a dedicated helpline.
If you have questions, comments or want to learn more about our services, give us a shout at 1-877-894-3583. The local number (for international callers) is 410-864-0830. Or you can simply reply to this email.
Quote of the Day:
“I can only imagine the level of justifiable outrage had your predecessor asked Americans to forward e-mails critical of his policies to the White House.”
– Texas Sen. John Cornyn
Recommended Reading:
Increasing Margins: Burning the house to save money
TFN’s Guide to Profitable Investing 2009
TFN Reader’s Grapevine Pick: It is a fine time to be a gold miner
Today’s Top 3 Financial News Stories:
Washington Post – Corolla earns top-selling spot in “clunkers” program “The Toyota Corolla bumped Ford’s Focus out of the top spot as the number-one selling new car under the U.S. government’s popular “Cash for Clunkers” program, according to figures released Wednesday afternoon by the Transportation Department.”
Washington Times – White House: War on terror is over “It’s official. The U.S. is no longer engaged in a ‘war on terrorism.’ Neither is it fighting ‘jihadists’ or in a ‘global war.’ President Obama’s top homeland security and counterterrorism official took all three terms off the table of acceptable words inside the White House during a speech Thursday at the Center for Strategic and International Studies, a Washington think tank.”
Bloomberg – GE ‘Buy American’ water-filter storage strands work “Contractors are searching the U.S. in vain for filters as well as bolts and manhole covers needed to build wastewater plants, sewers and water pipes financed by the economic stimulus. As officials wait for federal waivers to buy those goods outside the U.S., water projects from Maine to Kansas have been delayed.”
Good trading,
Andrew Snyder
Analyst, TodaysFinancialNews.com
Next Article: STEC: Insider selling is creating a wild ride
One Response to “TFN eNews 08/06/2009: Without the post office, how will we get paid?”
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August 6th, 2009 at 3:40 pm
I find it ironic that as a former Postal Employee, you can off he top of your head make the statements tht you do with absolutely no knowledege of the US Postal system. For a lousy 44 cents you can mail a letter anywhere in the US and have it forwarded for one year at no cost. It is not because of competition, we are far cheaper than they are. It is because of the Laws still enacted by Congress that prevents us from moving ahead. We are mandated to deliver mail 6 days to every household. We pick up millions in deliveries every year and we exist soley on the sale of our products. Yet, you expect to open your front door and reach into your mailbox everyday for free. The American public has long been spoiled by the service they receive and they expect it all at no cost, yet UPS and FED Ex would never do what the USPS does. They would be bankrupt. They take the cream of the crop and what they don’t want, they pass off to local Post Offices for delivery at the consumers cost, which is higher and the consumer doesn’t even know it. The Postal Service does an amazing job moving the mail every day. Maybe you should take a serious look for yourself and go visit and see how that letter or package you mailed goes about it’s destination. It is an effecient and modern system. By the way, the Postal Service never has delivered Social Security checks on Saturday. If the date falls on weekend it is delivered on Friday, always has been. Maybe Jo Ann Emerson should join you on your tour. The US Postal Service is by far the best bang for your dollar, yet the American public for some reason feels that their tax dollars pay for it and everything should be for free. No tax dollars pay for the USPS.They exist soley on the sale of their of products. How much do you even imagine it costs on a daily basis to send a carrier to your home every day? For Free…….. Unless you bought some stamps that day. Time to look at the whole picure here. Please do so………..