The New York Times announced that JP Morgan Chase has reported $2.7 billion dollar profit this second quarter even though we are in the midst of the worst economic downturn in decades.

Meanwhile in a Chicago Crains article,  Realty track  was quoted reporting a 32 % increase in foreclosure filings in Illinois. In Illinois, 10,796 households received a foreclosure notice in June, or one in every 486 households.

Based on these two different article, who are we to believe? Are the banks getting better and or are more homeowners loosing their homes to foreclosure?

One would believe a little bit of both.

Certain  big banks and JP Morgan Chase is one of the biggest, has benefited from the stimulus plan and while reporting some profits is not totally out of the woods as some experts are predicting.

There are not only bad debts on the books of the bank but if the economy continues to slump and unemployment continues to rise as some experts predict the current health of the banks will be in question.

As I have said in the number 1 problem that we are about to face is the rise in unemployment. As more people loose their jobs more homes will be foreclosed by banks and therefore threaten the banks balance sheets.