The Debt vs Equity Question

Very nice new John Mauldin missive out (okay, done by a guest, but still good), so read it in its entirely. Here is a quote from the conclusion that should be required by knee-jerk equity buyers:

… what would you rather own? Equities which currently trade at 15-20 times earnings or credit instruments trading at a fraction of that cost? Deutsche Bank has calculated that senior secured loans are now trading at an implied price earnings ratio of about 5 – less than a third of the cost of equities. There is no question that the real value is to be found in credit instruments. This is where most of the damage has been inflicted and it is where the big bargains are in today’s market.

If my head was shaking any stronger in agreement, you could hear it rattling.