11
Carry Is Synonymous with Power
Carry Flows from the Weak to the Strong
The grave Sir Gilbert holds it for a rule
That ev’ry man in want is knave or fool.
—Alexander Pope
WHAT IS THE FUNDAMENTAL ORIGIN OF CARRY? WHY, THAT is, does carry exist? We have already explained, in Chapter 6, that in a highly levered world, the value of money is the price of volatility. Those with the means to provide liquidity have the advantage over those who need liquidity, and that advantage must be exploited. This is the moral or law of carry. It is summed up above as Sir Gilbert’s rule: “Ev’ry man in want is knave or fool.” (The couplet above, from the eighteenth-century English satirical poet Alexander Pope, refers to Sir Gilbert Heathcote—the only person to ...
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