In Asia overnight, the Shanghai SSE Composite Index(SHA:000001) closed down 0.63 percent, or 15.53 points, to2,763.49, while Japan's Nikkei 225(INDEXNIKKEI:NI225) closed down 2.3% at 15,713.39. The 'worst case scenario' is directly ahead of world markets this hour, and it today's economic calendar offers feint hope of anything but more of the same.

The similarities to market signals in the lead-up to the 2008 period in the first eight days of October when the Dow lost a stunning 2,400 points, or 22 percent, are remarkable.

The fact that this is 'nothing like 2008' insofar as it is not directly catalyzed by a present threat from the world housing and credit crash is irrelevant, and somewhat inaccurate. After all, the intensity and severity of the ultimate capitulation that must occur for a genuine financial system reset is the by-product of the central bank/Treasury response to that crisis in late 2008 and through multiple rounds of stimulus to 2013.