All I can speak for is what I see, and I see a lot of people who were in the right place at the right time, got a cushy IT job, and now that they're out of work, have bills to pay, and are unwilling to accept a lesser job, thinking they're "overqualified."

I would pick your words carefully before making these broad generalizations. Not all jobs out there that were cut could be called cushy... the job I had I would not label as being "cushy" - I was even told by one of the higher managers that they wished they could have paid me more or given me the opportunity to move up (I was fighting the front lines of IT). But the result of poor upper management decisions, and buying about 10 companies in about a year and a half resulted in many many layoffs. Who did they lay off? The people at the bottom that were doing all the work. There are still over 30 VPs in a company of about 500 people now. And after I graduated from school - it took me 3 months to find this job.

That is not to say that there are those that basically stumbled into nice cushy IT or development jobs and spent a lot and are now finding themselves out of work. The problem is that I have tried applying to jobs that are a step or 3 down from mine only to find that I am overqualified and they dont want someone like that.

It is a sensitive issue, and my anger is centralized on the poor management of the piss bag of a company I worked for.