The $700 billion bad mortgage bailout is unlikely to fix the markets, says ratings agency Moody's.

Bloomberg reports that Moody's chief credit officer Richard Cantor says it will at best bring only short-term relief. It will not unfreeze credit markets. The tap will not be turned on.

"These latest government actions may prevent an extreme credit crunch, but we still expect credit conditions will tighten further for corporate borrowers over the near term,'' he says.

That's a rather unsettling observation. Not exactly a vote of support for the plan.

And while the bailout will achieve little, it is likely to have long-term consequences. Harvard Law Professor Hal Scott has told CFO.com that it will saddle future US administrations with an enormous burden.

So what's the real price of the bailout? No-one knows yet but there are already warnings that it could be very bad.