We Can Save Washington Mutual and other Banks by Overpaying our Mortgages

Washington Mutual Home Loans Logo - My Mortgage Company

Washington Mutual Home Loans Logo - My Mortgage Company

I think we, the mortgage holders and general citizens might be able to help in the credit crunch going on right now in the news. I am hearing so much about the Lehman bankruptcy and the AIG de-valuing today. Certain sectors of the economy are in shambles due to over leveraging and greed on the part of the top level executives in these banks and financial institutions and we really don’t know how deep this will go.

As much as I hate their greedy asses for getting us into this mess, (just to get another bonus to buy another yacht) I think you and I may be able to help so things don’t get worse. I think that if everyone that has a Washington Mutual (WAMU) Mortgage (like me) pays extra principle over the minimum ammount every month the cash on hand will rise above expectations and help keep the company running. I am currently paying $150.00 over my minimum now and my brother pays $250.00 over his minimum payment also.

The thing is it benefits you too! If you pay extra on your mortgage now it cuts payments off at the end of the mortgage and that saves you the interest that you would be paying on those payments. So, in my book this is a win-win situation. And don’t give me that line about mortgage interest tax deductions, that is only 25% back in credits on your money. It’s not like you get all of it back from tax deductions. Its still better to not pay the interest all together and save 100%. Duh.

You may be “saving” that money for when “financial armageddon” happens but really… those of us savers have been saving for years and have plenty of “cash on hand” now. We should pony up and get these mortgages paid down. It seems like the responsible and needed thing to do. Plus it gets a better return than a new handbag.

If 1,000 people pay $100.00 extra on their mortgage that is an extra $100,000.00 a month and an extra $1.2 Million a year for WAMU to keep afloat. If 5,000 people pay $150.00 extra on their WAMU mortgage that is $750,000.00 extra cash per month and $9 Million more per year. And 10,000 people paying an extra $200 a month is $24 Million a year. (which should do some good)  This may be small potatoes for a banking snob but it all adds up and is scalable since WAMU must have thousands upon thousands of mortgages out there.

Anyway, take it for what its worth and see if you feel like making a contribution to the capital that banks and mortgage institutions have on hand in this economy.

Now I do need to add a few disclaimers to this idea:

1. If you are having trouble making ends meet, this post or idea is not for you. Keep paying the minimum each month and move on to cash saving strategies pronto.

2. It is no one’s individual responsibility to do this especially if the job market is not good and they say to have a year in cash living costs on hand if you loose your job. Make sure you have that reserve first to protect yourself. 

3. We don’t owe those rich asses anything extra beyond minimum payments, but it might help the general economy and us all in the long run. And if you know one of those greedy financial execs, egg their car or something. Make it personal.

 

Update; um, this didn’t work. WAMU got bought, eaten and taken over by Chase bank. Poo.

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2009 Super Bowl Ads Commercials Selling Fast on NBC

super bowl 2009 tampa bay florida game logo XLIII

super bowl 2009 tampa bay florida game logo XLIII

It’s that time of year again when the first rumblings of the next year’s super bowl advertisers come out. (for super bowl 43) I think the companies just ask that their info be released this early to start the buzz cycle and get more mileage out of the media buy. There really isn’t any other reason to release the advertiser names now in September when the ads aren’t even finished yet.

They say the 30 second ad spots are selling for $3 Million dollars each. That is the going rate for a direct sales pitch into 88 million homes and TV sets all at the same time. (when are they going to start webcasting the game and the ads all together like a second delivery system of the same signal? why wouldn’t that work?) Advertisers that actually get a positive ROI from that kind of heavy hitting creative investment are wide appeal mass market companies that have products that are either seasonal at that time of year or products that relate to sports watchers or families watching at home.  Products like snacks, drinks, beer and cars have long been popular categories for Super Bowl Ads.

This year some of the confirmed advertisers are Pepsi and CocaCola, Anheuser-Bush, and a bunch of un-named Automotive, Movie and snack companies. Doritos have done really well the past few years and I wonder if they will plunge in again. I think the trend may be finally waning in the internet sites do ads category since few of them have that kind of money laying around anymore and/or need the visibility.

The timing of your ad during the Super Bowl Game is also crucial. The good spots are probably taken already in Q1 and Q3. Q2 gets boring because people have been sitting a while and just want halftime to start so they can use the bathroom and Q4 may be less well watched if the game isn’t almost tied the whole time. Many people just turn it off when the game is a blowout. The ends of pods are also bad because it just leads back into the game and consumers forget the ad pretty quickly. Being first in a pod is best since people have been proven to remember things in chunks and the beginning and end are usually the chunks they remember most.

Sometimes companies get their ads in at the last moment when 1 or 2 ads are left a week or two before the Super Bowl Game but this may not be available this year if companies are paying 300K more per ad willingly and forking over the money (or deposit) this early in the year. I think that marketers are realizing that in a fragmented market you have to be as prominent on every screen as possible to stay top of mind and above the chatter that gets tuned out. But ad placement is only 1/2 of the strategy. The other half is really the most important. It is really about relevance and humor. If you can make your product funny in a way that real people identify with personally, you have a winner and get all the chatter at the watercooler the next day.