So the Dow Jones gained nearly 300 points on the bailout of Fannie Mae and Freddie Mac. Don't expect the party to last.

Home loans are being foreclosed more than ever, growing at their fastest pace in three decades. Does anyone really think that saving Fannie Mae and Freddie Mac will change that?

Let's cut to the chase: this bailout was about saving the name and credit of the US. The collapse of one or both of the home mortgage giants later this year would have spelled disaster. The reality is that foreign Governments stopped buying their debt which turned the US Government into the funder of last resort.

Nor will the bailout help the US consumer. Consumer credit has hit its lowest level since December, driven in part by reduced demand for car loans.

Still, not everyone is doing it hard. Fannie Mae's chief executive officer Daniel Mudd and Freddie Mac's Richard Syron are going to get golden parachutes worth millions of dollars, reports the Los Angeles Times.

It's a situation that has compelled investor Jim Rogers to tell CNBC that the US is now "more communist than China." But, he says, it's socialism for the rich.