Static front Page not working as expected

Trying to set up a static front page with a blog page under it. The static page is working fine, but the blog page does not show up.

Steps:
Created a new page and set it as “Front page”, published it under settings, reading.
Created a blank page named “Blog”, published it and set it as the “posts page” under settings, reading.

I am expecting to see recent posts under the static front page, but only have an option for users to reply to the content on that page.

See screen shots here:
https://picasaweb.google.com/lh/photo/SvSUgyALULmJtMC2O9rsYg?feat=directlink
https://picasaweb.google.com/lh/photo/WH02PD4SHdyWhCb65SlYhQ?feat=directlink