In silicon valley, the big labor market is from the pre-IPO/Startup, that market is been HOT since M&A started back in 2002-03. VC put lots of money in the valley to find one company like Google, Youtube, Facebook, VMWare and so forth.
With the problem in the Financial Industry, it spill little bit over to the Startup in the bay area. One of the oldest startup Red Envelop shut its door today laying off all of its 200 employee according to Valleywag. Is this a beginning? Its a monster question.
If it continue like this people will forget the Financial Market in terms of how bad it was. Being said that, it make two prominent economy of US i.e Bay Area and New York, will struggle in the near future. The consequences will be much worst, as there is no remedy for this. Back in 2001 at least Fed has a room to lower tje interest rate. And now, there is not much Fed can do today.
Lets hope startup market won't fall.
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