Like all of us, Mr. Pedraza is restricted to see the world through his eyes. His view and all of our individual views are biased.
I suspect that he is speaking from a Wall Street / finance industry perspective. Afterall, it was a Bloomberg intereview and the audience there are all in the industry.
I don't agree with all the specifics he mentioned but I think the broad brush picture he is painting is that people (in the finance industry especially) may be less showy and more considerate. I have a watch enthusiast friend that works for one of the banks that failed and I refrained from telling him that I bought this great watch last week. I even thought twice about wearing it to a lunch appointment with him.
The size of watches was an example that Pedraza used to bring across the message. I doubt that the burst of the bubble will affect watch sizes directly but it sure will affect a lot of things....