Kass: Fed Cuts Leave Ugly Scar -- Blahflation

This blog post originally appeared on RealMoney Silver on Feb. 20 at 7:27 a.m. EST.

"You're walking around blind without a cane, pal. A fool and his money are lucky enough to get together in the first place."

-- Gordon Gekko, Wall Street

Bullish equity investors are thinking too linearly in attempting to rationalize value by observing rearview mirror indicators of economic activity and corporate profits while ignoring the emergence of blahflation (i.e., blah economic growth and stubbornly high inflation).

Not surprisingly, the media, preoccupied by the past tense of Wal-Mart's (WMT Quote) and Hewlett Packard's (HPQ Quote) earnings reports (and others), are missing the bigger picture as well. ...