The red ink was even darker than expected. It gets worse: Without some form of "Congressional action" (read: bailout), the USPS projects it will hemorrhage $238 Billion over ten years, and could go bankrupt by the end of 2011.
The "problem" is that with the advent of email, people simply don't send snail mail at nearly the rate they used to. A Democratic Congress might look at this problem and decide it's essential that the US Government intervene and prop up the Post Office's shrinking and outmoded business model. Hopefully a Republican Congress won't make that mistake.
Parting thought: Didn't President Obama cite the US Postal Service as a positive example of how to strike a happy balance between the public and private sectors during his Obamacare push? Yeah, he did.