Thursday, April 19, 2018

Finally the pension costs

The Citigroup Analysis of the Amazon – USPS Relationship

This scenario is seriously flawed for several reasons. First of all, there’s no reason to believe that such “a day of reckoning” is coming. If anything, we’re heading for a day when Congress recognizes the mess it created with the prefunding mandate and does something to fix it.
Great, but Congress cannot fix that mess ex post because there is a two way trade. The pensions are a liability on past deliveries, and Jeff got the disproportionate share of delivery services. So sure Congress might fix it, and absorb liabilities for the taxpayers. But taxpayers are a different distribution than Jeff.  Even moving forward and covering with future deliveries leaves Jeff the option to use UPS, which would then be cheaper.  

The attempt is to pitch this as a fair trade via magic distribution and adjustments of price fixings in the Swamp., won't work. This  is clearly a 12 billion gift from taxpayers to Jeff. Quit lying about it.

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