Remember that economic bailout plan that John McCain ripped from the teeth of Godzilla and Henry Paulson healed with his powers of rejuvination so that we may be delivered from another Great Depression? Yeah, it turns out that the economists (and anyone else paying attention) were right that it would be- at best- a temporary fix. 

We’ve sprung a leak, folks: 

Financial markets took a bleak view of the future Monday, seeing contagion in a credit crisis that threatens to cascade through economies globally despite government efforts to provide relief. The Dow Jones industrials skidded more than 500 points and fell below 10,000 for the first time in four years, while the credit markets remained under strain.

Investors around the world have come to the sobering realization that the Bush administration’s $700 billion rescue plan won’t work quickly to unfreeze the credit markets. Global banks, hobbled by wrong-way bets on mortgage securities, remain starved for cash as credit has dried up.

That has sent stocks spiraling downward in the U.S., Europe and Asia… The selling was so extreme that only 98 stocks rose on the NYSE — and 3,114 dropped.

Who’s going to break it to Iceland?