I disagree completely. I think there are really two markets for dev jobs: the startup economy which is over-inflated but also exists in a smaller high COL locat

I disagree completely. I think there are really two markets for dev jobs: the startup economy which is over-inflated but also exists in a smaller high COL location, and everyone else which had lower COL and wages to begin with and likely won't see much of a drop in wages due to the fact that their company needs those services to function efficiently. You can argue that the drop in employment in startup land may see some movement outside the bay area and into boring lower paid dev jobs, but I doubt that it will be more than a small blip. TL;DR: If you're at a start up the good times might be over. If you're not, don't expect much change (maybe less likely to see a pay rise). If you're just coming out of Uni and into the job market, you may see interesting times.