Sure, but what about the psychological impact / feelings of people when reading all the news of hiring freezes?
For example engineers that were laid off at Stripe in Seattle ordinarily have a good chance of getting a job at Amazon, but now Amazon isn't hiring. That combination certainly causes folks to feel uneasy.
Additionally, cities like Seattle are expensive and not all companies pay equally well. If you bought a house on a single income but suddenly cannot find a new job paying enough to pay your bills, then that's a problem too. Previously there were lots of jobs of similar pay to go around. In the current economy that is no longer the case. Suddenly you will need to make some tough choices.
Yes we can argue that nobody should have put themselves into such a position in the first place, but buying a house is incredibly difficult in markets like Seattle and San Francisco, and so I don't blame people who are now in this predicament.