As the markets get all giddy about earnings reports tomorrow from America’s favorite body signing CEO, it’s time to check in on this fantastic golden age that our nation has been enjoying while paying more for everyday necessities. Things are not so bad if one reflects on the “big picture” and ignores sixty percent of the US population so how bad can it be, right?
For those of my readers not familiar with Chapter 9, here is the stated purpose form the US Government itself, via the US Courts website:
The purpose of chapter 9 is to provide a financially-distressed municipality protection from its creditors while it develops and negotiates a plan for adjusting its debts. Reorganization of the debts of a municipality is typically accomplished either by extending debt maturities, reducing the amount of principal or interest, or refinancing the debt by obtaining a new loan.
In other words, one doesn’t see it very often because it’s usually a massive news event when it occurs. Since these pages discussed this threat extensively during the 2007-2011 Great Financial Crisis, it seems prudent to take a quick look as to what is happening now during this boom time in the US economy.
Arizona fire district stops emergency response, files bankruptcy
From AOL.com via the Arizona Republic’s story on August 2nd:
The Puerco Valley Fire District in northeastern Arizona stopped responding to emergency calls on July 24 and filed for Chapter 9 bankruptcy less than a week later, federal court records showed.
How did this come about? Also from the article:
Apache County stopped passing property tax money to the fire district and instead used it to reduce a deficit from earlier overpayments, according to the bankruptcy filing.
Apparently the Golden Age hasn’t reached the Navajo nation or America’s Indian reservations. Again.
Maybe it’s just an isolated incident right? No, this author must say afraid not. From Nebraska Public Media on August 19th:
Rural western Nebraska hospital files for bankruptcy, will continue operating
Excerpt:
Garden County Health Services (GCHS) in Oshkosh announced Wednesday it has filed for Chapter 9 bankruptcy.
“This decision was not made lightly,” CEO Sam Pennington wrote in a press release. “After careful evaluation with legal and financial counsel, we determined that a Chapter 9 filing is the best path to protect essential healthcare services, address our financial obligations in an orderly manner, and position Garden County Health Services for long-term sustainability.”
The western Nebraska hospital serves Garden County and surrounding areas with a health clinic, EMS, hospital and nursing home. The release said these services won’t be interrupted during the bankruptcy process.
And another ouch. A limited market with sparse population subject to the booms and busts of the agricultural industry impacted by the Golden Age. Thankfully they can now reorganize but one has to ask how many more stories like this are the American people going to read about?
Another hospital in Mississippi also filed this year so there seems to be a trend developing in rural America. From Supertalk Mississippi Media on April 16, 2026:
Greenwood Leflore Hospital files bankruptcy to keep potential for UMMC takeover alive
In an effort to continue serving patients in the Mississippi Delta, while also negotiating a potential deal with the state’s largest public healthcare system, Greenwood Leflore Hospital has filed for bankruptcy.
The medical center, which has been at the forefront of the state’s rural health care crisis, took its case to the United States Bankruptcy Court for the Northern District of Mississippi on Wednesday, contending that it is unable to pay its debts. The move comes after Greenwood Leflore Hospital (GLH) laid off 86 staffers and shuttered multiple departments last week, as it remains embattled in a legal dispute with the Mississippi Division of Medicaid.
Weird. I was promised in 2010 that Obamacare would make sure medical costs went down and affordable care would be provided to the poor and in rural disadvantaged areas. Guess that wasn’t such a Golden Age either.
Another interesting case was recently adjudicated in the Federal courts when a community failed to follow through on a housing project and the developer pursued a legal remedy. The small town of Cle Elum in the Yakima, Washington area pushed for a Chapter 9 Bankruptcy for relief in 2025 to the objections of the creditors. From KEPR TriYak News on June 24th:
Cle Elum aims to file adjustment plan by July 31 deadline
The city of Cle Elum has cleared a major hurdle in its bankruptcy case after a federal bankruptcy judge ruled the city is eligible for Chapter 9 bankruptcy protection.
The decision rejects a legal challenge from developer City Heights Holdings, which argued the city did not negotiate in good faith before filing for bankruptcy over a nearly $26 million court judgment tied to a stalled housing development.
Cle Elum Mayor Matthew Lundh said the judge found the city made substantial efforts to reach a settlement before seeking bankruptcy protection and determined the filing was made in good faith.
City officials have said garnishments related to the judgment froze hundreds of thousands of dollars needed to provide basic city services, contributing to the city’s financial crisis.
What does all this tell my readers? Perhaps that the “Municide” concern is not totally unfounded and worse, that the hidden financial bombs have yet to go off and really impact bond valuations in America’s municipal and private credit markets. These pages will start paying more attention to this subject matter and keep our readers up to date as events warrant.
