One of the biggest collapses this year hasn’t been in stocks. Crude oil has lost half its value since it peaked at just under $150 a barrel in July. Today, a barrel of the black goo sells for just over $80.

Outstanding Investments co-editor Byron King says “it seems like the investment locomotive — energy, resources and related infrastructure — has derailed.”

Does this mean you should sell your resource stocks? Byron says selling now would leave a lot of value on the table. That’s because resource stocks are now priced well below their intrinsic value.

– The German government is gearing up today to pump cash in the the bank and insurance sector. Talk is that Germans will stump up €470bn as part of the much-hyped ‘coordinated bailout’ campaign by European governments.

– The move has set off a rally in European banking stocks.

– Asian markets were also up this morning. Hong Kong shares shot up over 10%. It was the biggest one-day rise in more than 33 years.

– Meanwhile, European central banks have promised unlimited dollar funding.

– The worlds financial markets are waking up to a harsh reality this morning: the financial crisis has moved far beyond US subprime-mortgage meltdown to a fundamental breakdown of trust in the money markets that is dragging the sick and the healthy down alike. Yesterday’s drop below the 10,000 mark for the Dow is ample evidence that the Bush administration’s pork-laden plan to rescue the US banks has fallen short of its stated goal of shoring up confidence in the markets.

– As quoted in Agora Financial’s 5 Min. Forecast, “The idea of the bailout,” one trader told CNBC soon after the close on Friday “sounded better than the actual bailout.” 

– After a week of grim news, could Friday provide a happy ending to the week? Some in Washington certainly hope so. According to the WSJ, the bailout bill “appeared to gather momentum in the House of Representatives” after the strong bipartisan showing in the Senate.

– US stock futures reflect the brighter mood on Capitol Hill. “S&P 500 futures rose 9 points to 1,133.40 and Nasdaq 100 futures climbed 10.25 points to 1,520.75. Dow industrial futures rose 73 points,” according to MarketWatch.

– Also adding to the positivity is news that Wells Fargo (NYSE:WFC) is to buy Wachovia (NYSE:WB)in a $15.4 billion takeover.

The Senate is voting today on the bailout bill. It’s gained a FDIC insurance raise and significant tax breaks since it failed in Congress. Senate leaders say this would put pressure on the House pass the bill on a second vote.

The passing of the bill would mean “far higher prices are ahead,” according to Keith Fitz-Gerald.

And higher prices - otherwise known as inflation - means higher oil prices to come.