As tens of millions of Texans remain either without electrical power or needing to boil water to make it safe, market futures are up to start this final trading day of the week. A winter storm rarely seen in the Lone Star State has knocked out power and water service for a large segment of the state population. Hurricane-condition demands are better met by state government agencies.

Texas took itself off the federal power grid system, and now it shows. It’s a state where no one pays income tax, and now we’re seeing the negative effects. President Biden has already marked emergency relief funds for the state to keep citizens safe, regardless; clearly the state has not spent enough to look after itself. The #2 U.S. state by GDP — $1.89 trillion in 2019 — is about to display an economic hit not expected by analysts. The slide rules are no doubt back out to look for what we might expect in next month’s economic reports.

Texas is known as an Energy powerhouse, with massive (if depleting) resources in the state, supplying customers worldwide. But now semiconductor chip-makers like Samsung and Infineon are now shutting factories in the state, in what was already an historic shortage for chip-making. Auto supply companies in the state of Texas are also facing difficulties as a result of the massive storm system.