Microsoft is talking with Yahoo again. But so what? A merger will happen eventually and the longer this soap opera goes on, the stronger Google will get.

NEW YORK (CNNMoney.com) — Way to go, Steve Ballmer. You sure showed Yahoo who’s boss!

Actually, the Microsoft-Yahoo takeover saga isn’t over by a long shot.

Even though Microsoft “walked away” from a bid for Yahoo earlier this month, Microsoft’s CEO has come crawling back with a proposed “alternative” transaction that would not involve an outright acquisition of Yahoo.

Yawn. Does anyone honestly think that Microsoft (MSFT, Fortune 500) would be content with a mere joint venture with Yahoo (YHOO, Fortune 500)? The only reason Microsoft is going back to the table is because it needs to keep Yahoo from striking a partnership with Google.

If that happens, then Microsoft will fall further behind in Web-search advertising(I’ve already dubbed Microsoft the Dr Pepper of search because of its perennial third place showing in the online advertising race).

Ballmer’s extension of an olive branch to Yahoo is not just a desperate move by a company that realizes it must acquire something to compete with Google (GOOG, Fortune 500).

It also appears to be a shrewd move in light of the other big recent development in the Yahoo story: that activist shareholder Carl Icahn is threatening to unseat Yahoo’s board and force a sale to the company.

An alliance with Yahoo could keep Icahn at bay and also be a precursor to an eventual merger. It’s the corporate equivalent of living in sin - moving in with your spouse to make sure you’re really compatible before officially deciding to tie the knot. If you’re Jerry Yang, you’d have to think that making nice with Microsoft is a better option than getting involved in an ugly proxy battle with Icahn.

“It is just a matter of timing but some kind of MSFT/YHOO combination is imminent,” wrote Sandeep Aggarwal, an analyst with Collins Stewart, in a report Monday morning.

The upshot of all of this is that the longer this saga goes on, the more that Google can laugh all the way to the bank. The “Microhoo” talks have been a huge distraction for both companies. And it’s shown in their results.

Microsoft’s online services division, which includes MSN and the recently acquired aQuantive, reported an operating loss of $228 million in its most recent quarter - wider than a year ago - even though sales rose nearly 40%.

Yahoo’s profits, excluding a one-time gain from an investment, fell nearly 3% from a year earlier and sales rose just 9%.

Meanwhile, Google defied the skeptics who were expecting a rough first quarter and reported sales growth of 42% and earnings growth of 32% - both topping analysts’ forecasts.

Google is online advertising’s Big Brown. Yahoo and Microsoft aren’t going to catch Google anytime soon…if at all.

In fact, Google’s stock is up nearly 25% since I wrote a column in early April suggesting that the pessimism about Google was way overblown. And Google is still probably the best way to capitalize on the robust online advertising market.

This couldn’t play out any better for Google. All it has to do is keep innovating and focusing on its business. It doesn’t have to fend off angry shareholders or a jilted suitor that just won’t take no for an answer.

And even if Microsoft and Yahoo finally do the inevitable and get hitched, the courtship is going to take a lot out of both companies.

“We believe Carl Icahn’s proxy fight may ultimately drive a damaged Yahoo! into Microsoft’s arms,” wrote Stifel Nicolaus analyst George Askew in a report Monday morning, adding that he is encouraging clients to “consider swapping out of Yahoo! shares and into the shares of Google.”

Issue #1 - America’s Money: All this week at noon ET, CNN explains how the weakening economy affects you. Full coverage.

Are you buried under a pile of debt and need help getting out? Did you recently manage to pull yourself out of debt and want to share your story? Tell us about your experience with debt and how the current credit crisis is affecting you.. Send us your photos and videos, or email us to share your story.

Sure you want to save gas, but there’s a lot of bad advice on how to do it. Some of it makes no difference, and some of it can wind up costing you.

NEW YORK (CNNMoney.com) — With gasoline prices hitting record levels, it seems everyone has a tip on how to save fuel. Much of the advice is well-intentioned, but in the end, much of it won’t lower your gas bill.

Here’s a look at a few misconceptions:

You may have heard that it’s best to fill your gas tank in the early morning while the fuel is cold. The theory goes that fluids are more dense at lower temperatures, so a gallon of cold gas actually has more gas molecules than a gallon of warmer gas.

But the temperature of the gasoline as it comes out of the nozzle varies little during the course of the day, according to Consumer Reports, so there’s little, if any, benefit, to getting up early to pump gas.

Maintaining your car is important, but a clean air filter isn’t going to save you any gas. Modern engines have computer sensors that automatically adjust the fuel-air mixture as an increasingly clogged air filter chokes off the engine’s air supply.

While engine power will decrease slightly as the air filter becomes clogged, a lack of performance or an increase in fuel consumption will be negligible, Consumer Reports says.

With prices already over $4.00 a gallon, premium gasoline is a hard sell these days. But a lot of drivers think because their owners’ manual recommends premium, they’ll get better fuel economy with it. Really, they may be paying more money for nothing.

Newer cars for which premium is “recommended” - but not “required” - won’t suffer with regular fuel. Modern engine technology comes to the rescue again. When sensors detect regular instead of premium fuel, the system automatically adjusts spark plug timing. The result is a slight reduction in peak horsepower - really, you’ll never notice - but little or no reduction in fuel economy.

Always check your owner’s manual before putting anything into your car. And if your car runs badly on regular, by all means, go back to the pricey stuff. (See editor’s note at bottom)

Proper tire inflation is important for a number of reasons. Under-inflated tires are bad for handling and can even cause a crash. Improper tire inflation also causes tires to wear out faster and to heat up more, which could trigger a dangerous high-speed blow-out.

According to on-the-road driving tests by both Consumer Reports and auto information site Edmunds.com, underinflated tires reduce fuel economy, so proper inflation is key.

But you should never over-inflate your tires. They’ll get you slightly better fuel economy because there will be less tread touching the road, reducing friction. But that means less grip for braking and turning. The added risk of a crash isn’t worth the extra mile a gallon you might gain.

There’s no question air-conditioning makes extra work for the engine, increasing fuel use. But car air conditioners are much more efficient today than they used to be. In around-town driving, using the A/C will drop fuel economy by about a mile a gallon.

Meanwhile, driving at higher speeds with the windows down greatly increases aerodynamic drag. As speed increases, drag becomes more of an issue, making A/C use the more efficient choice at high speeds.

At most speeds and in most vehicles, A/C use drains slightly more fuel than driving with the windows down, contends David Champion, head of auto testing for Consumer Reports. “My final take on is that it’s very close,” says Phil Reed, consumer advice editor for Edmunds.com. “It’s hard to measure the difference and every vehicle is different.”

The best choice - if temperature and humidity allow - is to keep the windows rolled up and to turn the A/C compressor off. You can keep the fans running to blow in air from the outside, but your car will be as aerodynamic as possible while still letting you breathe. You will save gas, but the fuel economy improvement will be slight.

Before you buy a device that’s supposed to make your car more fuel-efficient or pour in an allegedly gas-saving additive, ask yourself this: Don’t you think oil and car companies aren’t doing everything they can to beat their competitors?

If BP (BP) could add something to its gasoline that made cars go farther on a gallon, cars would be lining up at the company’s pumps. Sure, people would burn their fuel-saving BP gas more slowly, but then they’d drive right past rivals’ gas stations to come back to BP for more. BP stations could even charge more for their gas and still sell tons of the stuff.

So if there really was an additive that made gas burn up more slowly, it wouldn’t be sold over the Internet one bottle at a time.

Likewise, car companies are already spending big bucks to increase fuel mileage. If General Motors could make its cars go significantly farther on a gallon simply by putting a device into the fuel line, don’t think for a second it wouldn’t be doing that. GM’s car sales would go through the roof.

“There are a number of these gas-saving devices that are generally useless,” says Champion.

But drivers who try them will swear they work. In reality, it’s probably an automotive placebo effect, says Reed. Buy one of these devices or additives, and you’re like to pay extreme attention to your fuel economy and how you drive.

Of course it can’t hurt to keep a close eye on your driving habits — and what kind of car you drive. In the end, that can make the most difference in saving gas.

Gas prices have climbed to record levels. Are you feeling the pinch? Tell us how gas prices are affecting you and what you’re doing to cope. Send us your photos and videos, or email us to share your story.

-Editors note: This story was revised from an earlier version to clarify that the advice to use regular gas instead of premium may not apply to all cars

1961 Ferrari convertible sells for the highest recorded price ever paid at a car at auction.

NEW YORK (CNNMoney.com) — A 1961 Ferrari California Spyder sold for $10,894,900 at an auction in Maranello, Italy, Saturday. It was the highest price ever paid for a vintage car at auction, according to RM Auctions and Sotheby’s, the companies that organized the sale.

The previous record was set in 1990 when Sotheby’s sold a 1962 Ferrari 250 GTO in Monaco for $10,756,000.

But that was a race car, not a convertible designed for driving on the street, pointed out McKeel Hagerty, president of Hagerty Insurance, a company that insures high-value collectible cars in Europe and North America.

Ferrari race cars have traditionally sold for much higher figures than the company’s street cars, Hagerty said.

“Ferrari 250 GTO’s are now selling privately for twice that,” he said

Prior to the auction, RM Auctions itself had estimated the value of the 1961 California Spyder at less than half of what it ultimately sold for. The car was one of 56 ever built, according to RM.

The high price paid for this car shows strong demand for vintage Ferraris in Europe, Hagerty said. In recent months, Ferraris have been selling privately between collectors for amounts far exceeding $11 million, he said, but noted again that those have mainly been race cars.

The record-breaking black convertible had been owned by gravel-voiced tough-guy actor James Coburn. He bought the car in 1964, according to RM Auctions, shortly after completing “The Great Escape.” It is not clear when Coburn sold the car. The actor died in 2002. The car was purchased by British television and radio personality Chris Evans.

“I think it just shows that there’s strong demand,” Hagerty said, “because you don’t get to that type of number without strong demand.”

Bargain hunters snap up 15,615 properties - foreclosure sales and big discounts included - in an area hard hit by housing slump.

SAN DIEGO (AP) — Home sales surged 22% in April in Southern California as bargain-hunters bought lower-end homes in areas hardest hit by foreclosures, a research firm said Monday.

Sales of new and resale homes and condos reached 15,615 in April, up from 12,808 in March and the highest monthly total since August, according to DataQuick Information Systems.

The monthly increase of 22% in the six-county region is well above the average gain of only 1.2% from March to April since DataQuick began keeping statistics in 1988.

Homes under $500,000 accounted for two-thirds of the monthly gain, DataQuick said. Riverside County, which the firm calls the “epicenter” of foreclosures and price declines in Southern California, posted the region’s only annual sales increase, its first in two years.

“Quite a few more buyers stepped off the sidelines last month to snap up homes at substantial discounts relative to the market’s short-lived peak,” said DataQuick President Marshall Prentice.

Foreclosures drew buyers, according to DataQuick. Nearly 38% of homes resold in April were in foreclosure at some point during the previous 12 months, compared to 36% in March and only 5% in April 2007. In Riverside County, foreclosures accounted for 53% of resale homes sold.

April’s median home price in Southern California was $385,000, down 24% from $505,000 in April 2007.

Despite the sales surge since March, April sales were down 19% from 19,269 in the same period last year, marking the weakest April tally since 1995, DataQuick said.

“We continue to look for evidence of a sales bounce in the mid-priced and higher-end markets along the coast,” Prentice said.

was some big news in the housing market Monday afternoon. Negotiators in the Senate Banking Committee agreed on a deal that will expand the Federal Housing Administration’s power to refinance troubled mortgages and give the companies a new, more powerful regulator. Many market players, such as BlackRock (BLK) chief Larry Fink, have held out hope that a legislative response will ease the pain of the housing bust. While this plan won’t solve the housing problem in itself, it could offer another half-step on the long road toward a solution.

“The bill addresses the root of our current economic problems - the foreclosure crisis - by creating a voluntary initiative at no estimated cost to taxpayers which will help Americans keep their homes,” Sen. Christopher Dodd said in a statement, Reuters reported. The plan is due to come to a vote before the Senate banking panel tomorrow.

Rating agency S&P also took Fannie Mae’s (FNM) debt and preferred stock ratings off watch for a possible downgrade, though it cut its risk-to-the-government rating to A-plus from double-A-minus and maintained a negative outlook on most of its ratings. “Fannie Mae is facing the most challenging housing and mortgage cycle in more than three decades, and at a time when its core earnings are weakened both from higher credit-related expenses and significant spread widening on both agency and nonagency mortgage-backed securities,” S&P wrote. “Given the highly stressed housing and mortgage markets, it is very unlikely that the outlook would return to stable before 2009.”

Nonresidential construction held up as housing slumped. But a slowdown for offices, hotels and malls is looming, which could be another jolt to the economy.

NEW YORK (CNNMoney.com) — Demand for new homes collapsed last year. Next up could be a similar drop in the rest of the construction market — and that could be the latest drag on an already sputtering U.S. economy

Nonresidential construction, which includes office buildings and retail centers, hotels and institutions such as schools, hospitals or government buildings, remained strong through much of 2007.

But a combination of the economic slowdown and tighter credit appears to be putting the brakes on nonresidential projects. Even if work continues on those projects already underway, there are signs that the pipeline of new construction is about to dry up.

“The trend is much weaker,” said Kenneth Simonson, the chief economist for the Associated General Contractors of America, the trade group for contractors outside of single-family home construction. “My conversations with contractors show they’re still quite busy. But their order books are shrinking and they’re quite worried.”

A slowdown in the entire construction market would be bad news for the economy. Investment in nonresidential buildings added an average of $250 billion to the economy every year since 1990. A downturn is also expected to lead to the loss of many well-paying jobs in the months ahead.

Economists say a fall-off in nonresidential construction in the face of an economic slowdown shouldn’t be a surprise.

“Developers are a little nervous about getting enough rent, getting enough tenants so they’re pulling back,” said Jim Haughey, chief economist for Reed Construction Data.

What’s more, Haughey said construction on some public infrastructure projects, such as highways and sewers, are being put on hold or slowed down as local governments struggle with declining tax revenue and tight budgets.

Industry tracker McGraw-Hill Construction reported that nonresidential construction starts had remained strong through February, then plunged 23% in March, the most recent month for which a reading is available.

Hotel starts tumbled 67% after the start of large hotel projects in Las Vegas and Atlantic City in February, while office construction was down 28% and store construction was off 18%.

McGraw-Hill Construction said the outlook isn’t improving either.

“The tight lending environment will dampen the volume of commercial projects as 2008 goes on,” said Robert Murray, chief economist for McGraw Hill Construction

Another troubling sign is that the Architecture Billings Index, a widely respected leading indicator of commercial construction from the American Institute of Architects, has been in a free-fall for several months. It hit a record low in March and has fallen more than 20% in the past three months.

“On the commercial side, best I can tell the problems are in all of it - offices, retail, hotels,” said Kermit Baker, chief economist for the American Institute of Architects. “I think we will see a prolonged decline”

Baker said he’s hopeful that the downturn will be limited since office vacancy rates are relatively low. But he said high prices for many basic materials, such as steel and copper will keep some projects on hold. A weak dollar and strong global demand for those products is keeping the prices high.

“We’ve seen construction material costs increase 6% to 8% [over a year ago] — much faster than inflation,” he said.

Inflation is also making the market seem healthier than it is. Haughey said higher material costs are masking the slump in nonresidential building because construction is measured by the dollars spent on projects. In other words, fewer structures are getting built but it’s costing more to do so.

David Seiders, chief economist of the National Association of Home Builders, said problems in the residential mortgage market seem to have spread to the nonresidential construction sector as well even though there hasn’t been a corresponding problem with rising defaults on those types of loans. He points out that the Federal Reserve’s latest loan officer survey showed that tightening of credit in commercial real estate.

The survey found more than two out of three loan officers said their lending standards in the sector have tightened “somewhat” and another 10% have tightened them considerably.

“The degree of credit tightening going on there is very noticeable right now,” said Seiders. “It’s frozen up along with the private mortgage-backed security market.”

Due to the strength of nonresidential construction, some builders and residential subcontractors last year were able to find jobs building offices, hotels and malls. Still, there has been an average of 32,000 job losses a month in the construction sector over the past 12 months.

And a slowdown in commercial construction will lead to even more construction job losses.

“The housing downturn is clearly not over, so this just seems like piling on at this point,” said Seiders.

Investors, initially drawn out of bonds and into stocks, returned after chip maker SanDisk warned of lower sales.

NEW YORK (AP) — Treasury prices rebounded Monday, with investors returning to the safety of government securities after stocks gave up an early rally due to weakness in the technology sector.

Earlier in the day, the stock market had rallied and Treasurys sold off after economic indicators pointed to slow growth later in the year - alleviating some investors’ worries about a deep, protracted recession. The Conference Board said its index of leading economic indicators rose by 0.1% in April, following a similar rise in March and several consecutive months of declines prior to that.

But later in the day, stocks gave up most of their gains as chip maker SanDisk Corp. (SNDK) warned of soft sales and as oil prices continued to climb.

David Ader, bond strategist at RBS Greenwich Capital in Greenwich, Conn., noted that Treasury trading volume Monday was roughly 64% of that on an average day, suggesting that bond market participants were finding little new information to jump on.

“It’s really stocks, nothing else but stocks,” said Ader. “That’s the driver in here. With the subdued flows, it’s hard to make a compelling story except for that.”

Bond prices: The benchmark 10-year Treasury note rose 6/32 to 100 13/32 and yielded 3.87%, up from 3.85% late Friday, according to BGCantor Market Data. Bond prices move in the opposite direction of yields.

The 2-year note rose 3/32 to 99 15/32, and its yield fell to 2.40% from 2.45%.

The 30-year long bond recovered from its lows of the day, trading flat at 96 30/32 and yielding 4.56%, down from 4.58% late Friday.

Treasurys have been bouncing within a range over the past several weeks as investors try to figure out the direction of the economy and inflation - and, consequently, how the Federal Reserve will alter interest rates going forward.

“Maybe the Fed’s on hold, maybe it isn’t, but we need more concrete information to make a decision,” Ader said

S&P 500 hits a 5-month high and the Dow transports reach an all-time mark following a better-than-expected leading indicators report.

NEW YORK (CNNMoney.com) — Blue chips clung to gains Monday, with the S&P 500 narrowly eking out a five-month high, thanks to a stronger-than-expected economic indicators report. But tech selling kept the Nasdaq in the red, along with record commodity prices.

The Dow Jones industrial average (INDU) added 0.3%. The broader Standard & Poor’s 500 (SPX) index closed just above unchanged, ending at a fresh five-month high. The Nasdaq composite (COMP) lost 0.5%.

Stocks struggled Monday morning on record commodity prices and a weak outlook from Lowe’s, before turning higher late morning after the release of the April index of leading economic indicators (LEI). Some tech selling dragged on the Nasdaq in the afternoon, while the broader market clung to gains.

LEI increased 0.1% in April versus forecasts for a flat reading, the Conference Board reported. Although not usually a market mover, the forward-looking report proved supportive to stock investors Monday.

“The LEI is showing that the economy remains weak, but is so far avoiding a recession, so that’s helping stocks,” said Peter Cardillo, chief market economist at Avalon Partners.

That economic optimism was also reflected in the Dow Jones transportation average, which soared to an all-time high as railroad stocks continued to surge.

That leadership was important, because railroads are historically among the first areas that recover after a recession or economic slowdown. Railroads and select truckers have been recovering for several months, even before investors began to forecast that the worst of the credit crisis is over.

Tuesday brings earnings reports from Home Depot (HD, Fortune 500), Target (TGT, Fortune 500) and Staples (SPLS, Fortune 500) before the bell and Hewlett-Packard (HPQ, Fortune 500) after the bell. The morning also brings the release of the Producer Price Index (PPI), a measure of inflation at the wholesale level that’s due in the morning.

Company news: Microsoft (MSFT, Fortune 500) and Yahoo (YHOO, Fortune 500) are discussing a possible deal that would include the purchase of Yahoo’s search business, following Microsoft’s failed attempt to buy the Internet company earlier this month.

Flash memory maker SanDisk (SNDK) reportedly made bearish comments about its sales outlook at a JP Morgan tech conference. The comments weighed on the shares of SanDisk and other technology stocks, Briefing.com reported.

Amazon.com (AMZN, Fortune 500) shares jumped 7.6% after Goldman Sachs resumed coverage of the company with a “buy” rating and boosted its six-month price target to $98 from $75, according to reports.

The runup in oil prices gave a lift to oil services stocks, including Chevron (CVX, Fortune 500), Exxon Mobil (XOM, Fortune 500), Valero Energy (VLO, Fortune 500) and Hess (HES, Fortune 500).

In earnings news, Lowe’s (LOW, Fortune 500), the No. 2 home improvement retailer, reported weaker earnings that topped estimates on lower revenue that missed estimates due to the impact of the struggling U.S. economy and slumping housing market. Lowe’s also warned that full-year results won’t meet forecasts. Shares fell 2.6%.

Market breadth was negative. On the New York Stock Exchange, losers beat winners 8 to 7 on volume of 1.15 billion shares. On the Nasdaq, decliners topped advancers four to three on volume of 2.27 billion shares.

Commodity prices: U.S. light crude oil for June delivery rose 76 cents to settle at a record $127.05 a barrel on the New York Mercantile Exchange, after hitting an all-time trading high of $127.82 a barrel Friday.

The national average price for a gallon of regular unleaded gas rose to a record $3.794, according to AAA. It was the 12th straight record high.

COMEX gold for August delivery rose $6.10 to settle at $910.20 an ounce.

Other markets: The dollar rose versus the euro and yen.

Treasury prices gained, lowering the yield on the 10-year note to 3.83% from 3.84% late Friday. Bond prices and yields move in opposite directions.

Ever wondered what someone else is making on their job? Well, we are publishing the answers. So, how much money does a make-up artist make?

Make-Up Artist

A make up artist is as the name suggests an artist. It is their job to apply the make up used by models or performers. It is not just the applying of beauty aids, but they also apply special effects make up that can be anything from showing aging to creating a monster. It is not a field that one can prepare for with normal schooling. Although some college preparation can help, it is more often trade school type education and on the job training that is more the norm.

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Getting a college education is a very smart move, but the cost of going can be crippling. College grant money is one way to make it less painful.

College Grant Money

A grant is a very good way to finance your college education. It has a major advantage over a student loan. You do not have to pay it back. Grants can be received from private organizations, educational institutions, or professional associations. The Federal and State government is the most common source of grants for college students.

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