During banking crises, the stock market can act as a "spare tire" for the economy by providing an alternative source of funding for businesses and individuals. This is because when banks are unable or unwilling to lend money, investors can still buy and sell stocks, which can provide companies with much-needed capital.

Here are some of the ways the stock market can help the economy during banking crises:

* Provides a source of funding for businesses: When banks are unable or unwilling to lend money, businesses can still raise capital by selling stocks. This can help them to continue operating and expanding, even during difficult economic times.

* Helps to stabilize the economy: The stock market can help to stabilize the economy by providing a place for investors to buy and sell assets. This can help to prevent the economy from spiraling into a recession or depression.

* Boosts confidence: When the stock market is performing well, it can boost confidence in the economy. This can lead to increased consumer spending and investment, which can help to stimulate economic growth.

Of course, the stock market is not without its risks. Stock prices can fluctuate wildly, and investors can lose money if they buy stocks at the wrong time. However, when used wisely, the stock market can be a valuable tool for helping the economy to recover from banking crises.

Here are some specific examples of how the stock market has helped the economy during banking crises:

* During the Great Depression, the stock market helped to provide funding for businesses that were unable to obtain loans from banks. This helped to keep the economy from collapsing completely.

* In the aftermath of the 2008 financial crisis, the stock market helped to raise capital for banks that were struggling to survive. This helped to stabilize the financial system and prevent a global recession.

The stock market is not a perfect solution for banking crises. However, it can be a valuable tool for helping the economy to recover.