I don't know why people think that the job market for Java programmers is dead.
A simple search for Java on headhunter.net
returns with a message that there are more than 5000 jobs in US posted within last 30 days. Gtanted that this is not the most detailed search but here are some other numbers:
The same search for New York City only produces 1868 job hits. Chicago comes bask with 430, Boston 842.
I agree that people with no experience will have more trouble finding a job than before but people who have been arround for a couple of years and ARE GOOD at what they do can find jobs.
The start ups are clearly no longer the hottest employers so look for bigger companies. There is still a huge amount of work in most of these companies that does not get canceled just because there is a slow down in the economy.
So cheer up.0