I think one thing thats often missed in posts like this is the memetic effect if Y-Combinator were to stop growing its class size. Its irrelevant whether or not

I think one thing thats often missed in posts like this is the memetic effect if Y-Combinator were to stop growing its class size. Its irrelevant whether or not YC's continued growth is reasonable or not because they don't have a choice in the matter at this point. YC is for a very large portion of people an indicator of the health of the industry. Were YC to cease growing, or worse reverse its class size, dozens of articles would appear about how this means the "popping of the bubble". Regardless whether thats the actual reason, it would have a detrimental effect on the startup world as a whole. I'm pretty sure PG is aware of this fact.