Sit down for this one. Because you’re just not going to believe it. It seems that the more credit rating agencies are paid by corporations and banks to rate their debt, the more favorable ratings they hand out! This goes against everything I know about the untainted, incorruptible hand of the free market, and comes very close to shaking my faith in the credibility of the rating agencies.

The Education Department plans to grant waivers for the No Child Left Behind law to states and school districts that “embrace reform.” This bypasses Congressional reauthorization of the No Child Left Behind law, and allows states and districts to get out from under the onerous burdens of the law, which has a deadline for 100% proficiency in reading and math by 2013-14, and which would close down schools that did not comply.

With more rumblings of a foreclosure fraud settlement in the air (you’ll notice that the New York Post’s not-believable figure of a $60 billion settlement has been revised down to $25 billion, and that none of the AGs who have repudiated the deal are quoted here), the more significant actions are happening, paradoxically, at the federal regulatory level.

I get the feeling that we’re sitting on a ticking time bomb, and we’ll replay this all over again soon.

No real movement thus far today on talks to avoid a government shutdown, but there is one piece of good news: the water works are functioning again.

I enjoyed the 60 Minutes story last night on the mortgage mess, because it actually went beyond robo-signing and touched on some of the more fundamental ways in which banks have committed fraud on state courts. Sheila Bair, in suggesting that individual homeowners could be paid off as a make-good for this trouble, and also suggesting that the banks could somehow cure this problem if they put enough time and effort into this, either displayed a misunderstanding of the issues or a not-very-credible recitation of the Administration line. In fact, some of these things cannot be fixed retroactively. The individual homeowner would have to give up due process rights for a cash payout that would result in them leaving their own home, and I simply don’t know who would agree to such a setup in the real world.

President Obama pulled off a neat trick with his announcement on regulatory streamlining yesterday. Initially, it earned praise from the right (they claimed it was their idea) and emnity on the left, even though it looked to be more of an announcement of general principles rather than any specific prescription. Then, when asked if the streamlining would incorporate the two major legislative goals of the Administration so far, health care and financial reform, both of which have a major regulatory component, they said no, the announcement had nothing to do with that. And that earned the emnity of the right and muted praise from the left. So as a result, nobody’s happy with this clear kabuki announcement.

I didn’t know whether to laugh or weep watching Rachel Maddow last night as she pleaded with her friend Gene to talk her off another ledge, this one driven by the fear our President has completely sold out to corporate capture and Republican frames defending it.

Don’t jump, Rachel, call them out. Hint: He’s not on your side.

The White House announced last night a series of changes to travel and remittance policies with Cuba, that will allow more visitation and transfer of funds to the island 90 miles off the coast of Florida.

Basically, the action in the next two years will be in the executive branch federal agencies, all of which will be under constant threat of defunding and harassment from the GOP.

But bipartisanship, in the Congress? Fuhgettaboutit.