For those wondering what the causes are of Texas blackouts, @JesseJenkins is doing a really good real time analysis of generator capacity and operation. (Short story: we have a natural gas problem in TX). A few additional thoughts to add:

1/ As Jesse notes, natural gas is somewhat unique in that it is both a power plant fuel and a home heating fuel. When cold weather comes, regulators bias in favor of heating rather than power generation.
2/ New England - a region that is both cold and has long been more reliant than others on natural gas for power generation - has had to grapple with this for a long time.
3/ In most of the country, the tightest times for power markets are during hot summer days when demand peaks to run all that AC. In New England, the tightest times are often cold winter days when supply gets constrained as the gas is redirected to heat
4/ Texas isn't used to planning for cold snaps, but they are gas-dependent on the power grid. So they are, in essence, acting like New England right now.
5/ So far, this is just what Jesse said but in more tweets. But there's also another factor at play that bears mention: reliability guidelines.
6/ If you are an electric distributor or provider with responsibility for a given electric control region, you are required to maintain exceptionally high reliability standards. Those include but are not limited to...
7/ ...making sure you can continue to meet demand if your largest single generator goes down and designing a system that provides electricity with 3 - 5 9s reliability (e.g., 99.9% - 99.999% online). See here for details: https://t.co/uWZXJm9jEB
8/ But our gas grid has no equivalent standard. Nor for that matter does our coal delivery infrastructure. That means that as grids become increasingly reliant on natural gas supply, the gas supply infrastructure becomes the reliability bottleneck.
9/ Texas is particularly exposed to this because it is a stand-alone grid. (The US "grid" is really 3 grids: Eastern, Western and Texas. AKA, ERCOT.) https://t.co/CnQcvbcOZW
10/ So while gas dependency + lower pipeline supply reliability standards have the potential to create problems everywhere, Texas' grid structure makes them uniquely vulnerable. The cold snap exposed that vulnerability.
11/ Anyway, that's all I got on this for now. But follow @JesseJenkins for continuing analysis on this week in TX. I definitely will! /fin

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SolarWinds Hack

A digital "Pearl Harbor" moment for the United States, whoever was responsible had access to the keys to the kingdom for months during 2020, including sensitive military infrastructure. This is war!

SunGard + SolarWinds

SolarWinds software company is owned by same company that owns SunGard, which essentially provides data center services. A secure place to host internet servers with redundant power and "big pipe" data connections.

https://t.co/U3P3SrrkM1


SunGard Data Center

In Nashville, around the corner from their "big pipe" connection, AT&T. Like any data center, highly secure. Only authorized personnel can enter, and even fewer can access the actual server rooms. Backup generators are available in case of power failure.


If the SunGard hardware was being used to "host" critical command and control software related to SolarWinds, the US powers would be very interested in gaining special access keys that are stored on the hard-drives of specific servers.
Patriotism is an interesting concept in that it’s excepted to mean something positive to all of us and certainly seen as a morally marketable trait that can fit into any definition you want for it.+


Tolstoy, found it both stupid and immoral. It is stupid because every patriot holds his own country to be the best, which obviously negates all other countries.+

It is immoral because it enjoins us to promote our country’s interests at the expense of all other countries, employing any means, including war. It is thus at odds with the most basic rule of morality, which tells us not to do to others what we would not want them to do to us+

My sincere belief is that patriotism of a personal nature, which does not impede on personal and physical liberties of any other, is not only welcome but perhaps somewhat needed.

But isn’t adherence to a more humane code of life much better than nationalistic patriotism?+

Göring said, “people can always be brought to the bidding of the leaders. That is easy. All you have to do is tell them they are being attacked, and denounce the peacemakers for lack of patriotism and exposing the country to danger. It works the same in any country.”+

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I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.


I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.

In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.

So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.

Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.