KATIE GRANJU: Axelrod recants on Blagojevich; I don’t. “So I’m supposed to believe that Axelrod ‘misspoke’ when he said he knew that his boss had spoken with the governor? Because I don’t. Either Axelrod is lying or Obama is lying. That’s my position based on my knowledge of how politics works, and the evidence so far.”

UPDATE: The real news from Chicago. “Sure, the name Rod Blagojevich came into the story, but each announcer in turn tripped over himself to assure the audience that BARACK OBAMA HAD NOTHING TO DO WITH IT.”

ANOTHER UPDATE: Via Katie Granju’s comments, here’s a story about Obama meeting with Blagojevich to talk about filling his Senate seat. [LATER: Hmm, that story has mysteriously vanished. But Katie posted an excerpt here. More on that story here.]

MORE: ABC News: Sources Say Rep. Jesse Jackson Jr. Is ‘Senate Candidate No. 5’.

Plus, questions for Obama.

STILL MORE: John McGinnis writes: “Edwards was right all along. There really are 2 Americas — Those that are on the take, and those that are not.”

MORE STILL: From Tom Maguire. “Axelrod lied plenty of times on the Ayers story, so the idea that he is saying what is expedient, rather than true, is pretty familiar. And clearly someone from the Obama side told someone from the Blago side that they would not play ball. I suppose the potentially embarrassing question is whether the Obama side then mentioned this to Prosecutor Fitzgerald.”