Japanese, Australian and Korean stocks dropped around 2 percent at the open, and then quickly extended losses to around 4 percent in the first 15 minutes of trade. Hong Kong’s Hang Seng index, which opened two hours later, dropped by 4.5 percent…

“Welcome to panic selling, welcome to chaos,” Enzio Von Pfeil, founder of the Economic Time Bond Fund told CNBC on Friday. “The psychology of the crowd is coming back, so everybody wants to be out of these stocks.

According to Von Pfeil, the selloff was because “reality has finally set in that things are just not going to get solved.”