Speculators risk money in such investments because they hope that price of an asset they purchase will quickly increase. Since most speculators are nervous about where they invest their money bubbles are by no means the norm. After all, speculators face the danger that the item is already overpriced. They also know that rising prices I'll encourage either greater production of a commodity or greater willingness of current owners to sell.Either of thesemconditions can serve as an negative feedback mechanism that adjusts prices downward. In economic situations, negative feedback woks a bit like your eyes do.As the laght gets brighter, your pupils get smaller and let in less light.But what if your eyes worked as a positive feedback mechanism? In sunlight, your pupils would open wide and damage the retina