<em>In order to control its new empire, Spain created a formal system of government to rule its colonies. todemand labor or taxes from Native Americans. ... Largely due to Las Casas's efforts, the government of Spain ordered reform of the encomienda system in the mid-1500s.</em>
Answer:
Speculation in the Markets
Explanation:
The best explanation is that people borrowed money to play the stock market and when the market crashed, they not only lost their money but they owed money still. This caused the credit market to freeze up as everyone's debt was occupied and lenders didn't have money to lend out anymore.