I understand the logic that the Sequoia presentation endorses. The problem that I have is with their timing. The signs were clear of bad economic times at least a year ago and probably much earlier than that.

That being said, I still think it's a great time to be working on a startup. I knew the economy was going to tank and yet I still started my company earlier this year. Smart investors who still want to be in the game and yet have fiduciary responsibilities should have been providing at least some warning earlier to their portfolio companies long before it all hit the fan in the last few weeks.