Centex Homes Lost $8 Billion
For American Pensions
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More Stock Market Hijinks
Centrex is a home builder whose stock value dropped $8 billion. Just
in the 2008 fiscal year the company showed negative earnings of $2.85
billion. So, have no fear the controlling stockholders sold at the top,
before the bad news, and shorted on the way down.
Think in terms of gold coins. You took a bag of 1000 gold coins to
Lehman Brothers, and they gave you a paper certificate in Centrex Homes.
Now out of the 1000 coins, they gave Izzie Friedman 950 coins, and kept
50 as commission. The best part of it all is you were told that the
stock value was just a paper profit, and the value was just factious.
But, the truth is your gold coins didn't just disappear.
The truth is money doesn't vanish, it just changes hands.
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