It's not that there are too many people with JD's- there are too many people with degrees from schools w/ awful reputations. The rising wages are going disproportionately to those at top 25 schools, and they're not making any more of them. It's like saying that there are too many cars in America, but how could the price of BMW's keep rising when there are too many cars? There's only a finite # of "BMW" law students out there.
Good point. I have to say that I agree. Here in DC, the big firm going rate reportedly just went up another 15k to $160k and it's because there are now more law firms in DC competing for the BMW students (as a previous poster said) and a lot more top students are being wooed into jobs in Texas and internationally. Furthermore, I have also heard numerous stories of grads (friends of friends) from reputable law schools in the DC metro area (not GU or GW of course) taking positions as office managers, etc. until they found something law related [aside from the temp basement doc review torture].