Danise - There's some truth to what you're saying about being "over-qualified" in tough times, at least in my experience.
I found myself out of work in the tough economic times of 1991, and I was confused since I had a Bachelor's degree in Accounting & Computers, a Masters in economics, the basic J.D. law degree, and was one course away from getting the LL.M. which is the Masters in law, but clearly said in my cover letter that I would take a lower salary than I had been making at the job I lost. I was having terrible trouble even getting interviews.
Then around October a headhunter told me that for all my stating that I'd take a lower salary, the Human resources people generally were trained (not unjustifiably) that that was code for "I'll take a lower salary but once times get better and I can get back to my former salary level, I'll be out of here with no regard for all the training you gave me."
So we created different resumes, one with all my education, and one showing only the Bachelor's degree and the law degree - and I had a job offer that i liked within a few weeks.