With deposits falling and loan demands rising, what's a bank to do? Many banks are selling securities to fund loans, others are turning to their local Federal Home Loan Banks.

Although this deficit has been rising steadily since the early 1990s, a "hard landing" for the U.S. economy is unlikely. One reason is that only in the United States can so many foreigners invest so much money and get such good returns.

To those who don't know, the term "shadow banking" probably has a negative connotation. This primer draws parallels between what has been termed the shadow banking sector and the traditional banking sector—showing that they are similar in many ways.

The diagnosis on banks is comforting, despite a few weak spots here and there and an economy that's slowing down.