"Deleveraging Everywhere." It doesn't get much more concise than and it is exactly how Stifel Nicolaus trader Dave Lutz begins his morning missive to clients today. For others, the sheer volume of things suddenly going wrong is almost fitting, given the 7-month rally that defiantly pushed stocks to all-time highs.

"No one knows how it will end but we do know this; it all comes at once," says Peter Kenny, chief market strategist at Knight Capital in the attached video, of roiled world markets, including the Dow Jones Industrials (^DJI) , which is suffering its third, 200-plus point down day in the past 4 sessions.

Not only is he - and every investor for that matter - contending with the fastest eroding bond market in most of our adult lifetimes, there's also the continued debasement of complicated Chinese markets, as well as the perennial perk-up of Eurozone bond yields, which have Geiger counter-like sensitivity to any signs of trouble.

Not only did China's benchmark Shanghai Index shed 5%, but every major equity market in Asia and Europe closed lower today, adding to the weight upon U.S. stocks, which were being lead lower by economically cyclical sectors such as Energy (XLE), Materials (XLB), Financials (XLF) and Industrials (XLI). More broadly, the emerging markets (EEM) continued their descent towards bear market territory, having plunged almost 20% now from a 52-week high hit at the start of the year. If not for the isolated gains of the dollar (^DX-Y), Treasury yields (^TNX) and volatility (^VIX) there would be no green at all on trader's screens.

And yet, in spite of all of the contagion and liquidation, a silver lining may emerge this week in the form of a parade of seven Fed governors who are on tap to make speeches in the next few days, and hammer home the reality that when Ben Bernanke says any reduction in stimulus from the markets will be "data dependent," he means it.

US stocks are getting hammered in early trading as uncertainty over the Chinese growth story sends investors to the sidelines. The S&P; 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) are both down over 1.5% and the yield on the US 10-year (^TNX) note has risen over 2.6% for the first time in nearly 2 years.

The People's Bank of China (PBOC) triggered the latest sell-off after it in effect told participants in the Chinese banking system that they would be left to their own devices in handling an apparent liquidity crisis.

"At present, the overall liquidity in China's banking system is at a reasonable level, but due to many changing factors in the financial markets and also because of the mid-year point the requirements for commercial banks in liquidity management have become higher," the PBOC said in a statement released on its website earlier today.

Overnight lending rates have exploded in response to the the PBOC's non-action. The Shanghai Composite Index (^SSEC) fell 5.3% with the Hang Seng (^HSI) dropping 2.2%.

As Breakout co-host Matt Nesto says in the attached video the concerns bedeviling the Chinese economy should be familiar to U.S. investors. "There are banks over there reporting a quadrupling in their non-performing loan ratios and that's why their hand-braking on the lending between each other."