How to make Folders on Android 4.0.4 Ice cream Sandwich

Upgraded my cell phone finally. Now it’s time to customize my phone with all of my folders and regular apps. so… wait.. wtf? Why? Where did it go?
Took me a couple weeks to learn this. but of course I just upgraded from one of the older versions of Android that allows you to long press the main screen to create folders and a few other options. So it was frustrating when I long pressed my main screen and the only option I got was to change my background.
One of my coworkers has gone so far as installing some application that helps him create folders on his phone and get this. It even lets him create labels for the folders.

Well, the answer is simple. yet impractical. So when you see the answer, you’re going to twitch an eye a bit. It’s so simple that when I tried to show my coworker, he wasn’t having it. Did not want to hear any of it.

go to main menu
Locate application shortcut.
long press that shortcut.
drag and drop to main screen.
locate another application, long press that application
drag and drop that shortcut onto the other application shortcut on main screen.

Folder will pop open, now click on the title. It will allow you to create a title for the folder.

This might be an accident, and will most likely get removed from next version of android.
Can’t go letting us have all this control .

Right?