The $700 billion bailout package that Congress is scrambling to pass will only prolong economic woes, legendary investor Jim Rogers, CEO of Rogers Holdings, told CNBC on Wednesday.

"History shows these plans don't work. What does work is to let the market clean itself out," Rogers told "Worldwide Exchange".

Federal Reserve Chairman Ben Bernanke, like his predecessor Alan Greenspan and together with Treasury Secretary Henry Paulson have been intervening in the markets and preventing them from acting naturally, he added.

"Capitalism is where the market does its work. These guys, for the last 8 to10 years, have refused to let the market do its work to clean itself out," Rogers said.

Bernanke and Paulson, have been "dead wrong" for the past two years for telling the public that overall the US economy was fine, "why would anybody listen to them?," he added.

Rogers cited the examples of Russia and South Korea, both marred by crises toward the end of the 1990s, and which afterwards enjoyed years of rapid growth.

"You let things collapse…and you have a clean growth afterwards," he said.

Rogers said he was back into buying Chinese shares over the past weeks as the country's monetary policy had started to loosen up, and that commodities offered better returns than stocks.

(Source)⇒CNBC