Comment by bartart

Here is an interesting article outlining some specific Clinton-era laws that were an enormous help to private equity: https://prospect.org/economy/cut-off-private-equitys-money-s...

There used to be strict leverage restrictions on funds that raised money from investors, as well as limits on who/what entities could invest in the funds. The article really goes into more detail but lawmakers and the Clinton administration eliminated these laws and birthed the modern private equity industry which is pretty much the definition of short term focus.