So sorry to hear about your situation. Being out of work is bad enough, but it sounds like you have been dealing with a highly unethical "head hunter". Then, to add all the emotional stress, you have two different problems going on.
First and foremost, you are in need of some mental health care. Instead of checking yourself into an expensive psychiatric hospital yourself, maybe you should try going through your local Emergency Room. If you describe all the details of your mental condition, stressing the physical self-harm issues, you could probably receive the help you need, without the concern of payment up-front. You will probably be held for a period of time for observation and treatment, where you can concentrate on clearing out a lot of the negativity you are dealing with. Also, being uninsured, the hospital should have a financial aid plan for people without insurance, anything from a reduced fee to a complete "write-off" of charges.
Once you have regained an adequate emotional balance, then you can deal with the job situation. Like I stated previously, you have obviously been dealing with a highly unethical job recruiter. He may say you are being "black-balled" by his company, but to threaten you with being "black-balled" by all other recruiters is criminal. If you think about it, recruiters compete against each other for clients. They need as many people looking for job placements in order to satisfy their clients' employee requirements. Your recruiter is trying to bully you, pure and simple. Unethical and stupid to boot. I'm sure you would have no problem moving on to another recruiter. You might also consider placing a complaint against this person/company with the Better Business Bureau. If you are really ticked, as I would be, I would pursue possibly legal action again the recruiter for extreme emotional distress and illegal threats. You would have your hospital records to back you up on the emotional stress thing. I would check with your local Legal Aid agency to see if you have a prosecutable case. Plus, as they say, vengence is best served cold.
I'm sure you can get through this, just keep your long-term goals in mind. Hopefully, you have a friend or relative to help you through this rocky time. If not, we are always here for you.
Keep your chin up and keep us updated. We care.