Wikis > Leverage Points Wiki > 7-the-gain-around-positive-feedback-loops

Stocks dominated┬áby positive feedback loops change dramatically–getting bigger faster or getting smaller faster–bust or collapse. If you care about the long term outcome, rather than only short term gain taking, then it makes sense to find ways to slow the rate of change as well as to introduce balancing loops (negative feed back loops) to keep the stock and the system within sustainable ranges.