In many ways, the encomienda system resembled a feudal system: The Spanish monarchy granted conquistadors, soldiers, and other officials control over a specific number of Indians, and later Africans, as well as the lands on which those Indians lived.
The wanted to create more free states to control Congress.
Over speculation means to over "guess." eg, majority of the people feel the stock market will go up, so they greedily buy, when in reality it's the peak already and stock market prices will drop soon.
