Accretion disks around black holes in which the shear stress is proportional
to the total pressure, the accretion rate is more than a small fraction of
Eddington, and the matter is distributed smoothly are both thermally and
viscously unstable in their inner portions. The nonlinear endstate of these
instabilities is uncertain. Here a new inhomogeneous equilibrium is proposed
which is both thermally and viscously stable. In this equilibrium the majority
of the mass is in dense clumps, while a minority reaches temperatures ∼109 K. The requirements of dynamical and thermal equilibrium completely
determine the parameters of this system, and these are found to be in good
agreement with the parameters derived from observations of accreting black
holes, both in active galactic nuclei and in stellar binary systems.Comment: AAS LaTeX, accepted to Ap. J. Letter