The markets are indeed going absolutely nuts yet the critical USD pegs haven't been broken. $/Yuan still below 6.83 level while the USD/riyal is still intact for 30 years and running. When these pegs get devalued as their controllers get knocked out by the market that's when markets will begin falling off the cliff.

Saudi index is already hinting that it's about to fall off the cliff!

Something huge is about to blow the the can of worms/pandoras box wide open. The three week global market sell-off is a big red flag and not just happenstance. The Fed hike amongst other factors probably narrow down the time frame for such an event to Q1 2016. Equities worldwide are going to have a very tough year and then some deep into 2017. The dollar has been taking a breather and should resume a monster rally as things become chaotic.

Chinese banks are delaying and even blocking some foreign exchange transactions under a decision by the central government to limit capital leaving the country, a move that could hurt demand for foreign assets including Australian property.

At meetings on Monday and Tuesday afternoon senior bank executives were told by the government to toughen up their capital controls.

A former adviser to China's central bank, Yu Yongding, said the decision to tighten existing capital controls was "useful but not sufficient" because the yuan is overvalued. "If they keep the exchange rate unchanged it encourages outflows because the [yuan] is very expensive to hold," he said. "They need to allow the [yuan] to devalue to market equilibrium."

An Australian real estate agent based in Shanghai, Scott Kirchner, said the tougher capital controls could "cause problems for Australian developers as clients may not be able to get their money out of China".

UBS China economist Wang Tao said the "top concern" of markets is capital outflows getting "out of control, leading to a sudden tightening of domestic liquidity and sharp depreciation of the currency, resulting in market turbulence in China and elsewhere in emerging markets"