The best companies are started in a down economy. When the economy is going and the money is flowing, then all the talent gets dispersed amongst a bunch of ideas. Y Combinator says, hey, we'll give you 500k, and there's all this drunk excitement. When everything is compressed and people are trying to recruit talent, and those people that are crazy enough to go do a startup, they get together. That's how you create a PayPal mafia.