The recent long run of low interest rates was supposed to be good for
relatively weak business ideas; if I followed one explanation
correctly. The bank says "Do something safe like build retirement
homes and homes for those who work there and get a nice cheap loan."

So, what's going on now?

I remember in a course on finance 20 years ago, there had been "an
inversion," and it was supposed to signal something. What is the
practical signal implied? Do we do something harder/more relevant?
Is this when to submit a loan app to a bank for something more
ambitious? Or to insurance companies, if banks are not prepared to
take on risk? Or to NASD broker-dealers, though I've long been told
they'd sooner run you over than answer a letter. If this only happens
once in 20 years, how about some
solid recommendations on responding correctly and promptly?

It's okay to base your answer on advice for past "inversions" though
I'd appreciate some contemporary comment.

Just a passing comment on a closing question, I've owned 2 businesses...

This is not the Inversion you're asking about, but it's related.

There's a saying my Dad, also a successful entrepreuner, used to tell
me during the years he mentored me:

..."When it's time to pull back, -PULL BACK ...when it's time to extend, EXTEND..."

This is the normal ebb and flow of a business, but the same principle
as what your inversion implies. There's no magic signal for this, an
experienced businessperson knows the feel and tempo of their business,
you just *know* --it becomes a pregnant moment --and you know the
tides have changed. When you pull back you take on no new debt, become
frugal and make safe decisions. When it's time to extend, move into it
cautiously, but then hit the gas. You know when it's time. This is
when you aquire new equipment, expand, be a bit more risky. Profits
are up, but save for lean times.

That's for the stroll down memory lane!

~~Cynthia

I was curious and went searching (gasp!) and I found this:

Column: No Telling on Yield-Curve Inversion 
http://www.forbes.com/feeds/ap/2006/01/06/ap2433228.html
..."If history is any guide, the phenomenon known as the inversion of
the yield curve doesn't bode well for what's ahead. When the return on
10-year Treasury notes slid lower than those on two-year notes in the
past, it often was a precursor to a recession..."


You can find more leads with this search string:

Entrepreneurs Inversion
://www.google.com/search?hl=en&q=Entrepreneurs+Inversion&spell=1
(Don't be shocked, this question comes up first on the list!)