WHAT HAPPENED?

Repricing "the new volatility paradigm," you got to love these Wall Street fellows. There's no proof the Fed ever had that magic touch. It's the Fed that's caused the carnage by interfering with what would be natural market forces in the first place. Pouring money into the marketplace to prop up weak companies is akin to what so-called well-intentioned politicians do with their looney legislation: punish the many to capture the few. It's a form of political religion.

The Fed all these past eight years copted a page out of history that happened right after the attempted assassination of President Reagan when one of his cabinet people took the stage on national television and claimed he was in charge.

Trying to repress volatility is like trying to take the risk out of life. It's all these plastic package containers no one can open today without their own personal chainsaw mandated in the name of child safety. As a friend frequently points out, life is a terminal illness. Change that and it isn't life anymore.

Trying artificially to repress volatility and they are really not markets with true price discovery any longer either. Tweaking and tampering both begin with the same letter of the alphabet.Tweaking is basically an action of insecurity, tampering of arrogance. With the former you haven't got a clue, with the latter you're absolutely certain you do.

The bigger issue for financial markets is that central banks are running out of ammo, the Allianz chief economic adviser told CNBC. "Markets are realizing that central banks can no longer repress financial volatility. And they are repricing to new volatility paradigm," he said in a "Squawk Box" interview.

To that end, any shocks to the markets will take longer to reverse themselves, said El-Erian, former Pimco co-CEO. "What we're going to see is every time something happens in the world it's going to take longer to restore stability. That's what we're seeing with China today.

Expect more of these Wall Street fellows to cough up their views of the age-old question: "What the hell happened."