Despite subprime writedowns, JPMorgan (JPM) is bringing in a profit. It’s only half the profit it expected, but it’s still a profit. And that profit is enough to help JPM stock gain on the market.

However, earnings reports have just begun for mortgage lenders, and Wachovia didn’t fare nearly as well. And these reports don’t do anything, really, to alleviate some of the fears for the economy. The Times Online reports on the future of US credit markets:

Jamie Dimon, the chief executive of JPMorgan — the first bank to report
quarterly earnings this week ahead of Merrill Lynch and Citigroup — said
that he expects the economy to stay weak and for the credit markets to
remain under stress.

This means that mortgage lenders are likely to continue with tighter mortgage lending standards, and that it might be harder to get a home mortgage loan.