Anybody returning to New York this week after an extended summer holiday could be forgiven for thinking the boom never ended. Goldman Sachs churned out a 79 per cent surge in third quarter earnings. Private equity giant Carlyle snared a strategic investment from Abu Dhabi at a juicy $18bn valuation. And the S&P 500 leapt to within a whisker of all-time highs after the Federal Reserve’s shock half-point rate cut triggered a 3 per cent jump – the most euphoric day for stocks since the US invaded Iraq in March 2003.

Equity investors clearly believe the Fed’s attempt at shock and awe will prove more effective at creating stability in the markets than the US military’s version was in Baghdad.