The US economy is growing; the revision for the third quarter GDP growth was annualized 2.2%. While this number is lower than the original estimates, it is important to reiterate that it is much better than the significant declines we saw in GDP during the year ending June 30, 2009. Economists who participate in the Blue Chip Financial Forecasts believe that the economy will grow by approximately 3% for most of 2010 (2.9% in the first part of the year 3% in later months). Many indicators of consumer spending over the recent holiday shopping season showed improvement, and in some cases surprising strength. While unemployment remains high, recent new jobless claims have been trending in a positive direction. The housing market remains relatively slow, but it does benefit from low interest rates. Monetary policy remains stimulative (although vigilant for signs of inflation). While the economy is clearly in better shape than it was a year ago, questions remain. We continue to watch the effects of the government stimulus program as it enters its second and final year. Will the other parts of the economy gather sufficient momentum to offset the positive effects of government stimulus when they expire late in 2010? Time will tell.