You know Michael Arrington loves startups. How else could you explain this outburst of poetry?
Just like a bear in the woods (I imagine) has to slow its activity in the Winter as food supplies dwindle, startups need to go into cash conservation mode to increase their chances of survival when the market slows. They need to be prepared for a hit in revenue, and they know they can’t necessarily go to the capital markets to get money to stay in business.
But to argue that a company should always cut costs to the bare minimum is the same thing as asking that bear to act like it’s Winter in the Spring, just because someday Winter is definitely going to happen. All you end up with is a dead bear.
Well, good luck to all. Especially the bears.