 Happy Tuesday and welcome back to On The Money. I'm Niv Elis, bringing you a wrap up of the latest finance news. Sylvan Lane is off this week ahead of the Thanksgiving holiday. See something I missed? Let me know at nelis@thehill.com or tweet me @NivElis. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N. Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill, @NJagoda and @NivElis. THE BIG DEAL Stocks erase 2018 gains: Stock markets on Tuesday closed below the levels they opened on January 2, 2018 (January 1 is a banking holiday). The S&P closed down 49 points, or 1.8 percent, while the Dow Jones fell 552 points down, about a 2.2 percent drop. It was the second day in a row of massive losses on U.S. markets. Declines in tech sector stocks also led to a significant drop in stock prices on Monday. According to CNBC, the group of high-powered tech stocks known as FAANG (Facebook, Amazon, Apple, Netflix and Google) have collectively lost $1 trillion in value since their market peaks earlier this year. But tech stocks aren't the only concern for the stock market. Read more here. LEADING THE DAY Why the economy could be a challenge for the GOP in 2020: There are growing signs that the economy will slow substantially over the next two years, posing a significant problem for President Trump and Republicans who highlighted economic growth heading into the 2018 midterm elections. Goldman Sachs on Monday issued a report projecting gross domestic product (GDP) growth will slow to 1.8 percent and 1.6 percent in the third and fourth quarters of 2019, respectively, sooner than anticipated and creating a major headwind for GOP candidates the following year. The bank's chief economist, Jan Hatzius, wrote in a note to clients that "tighter financial conditions and a fading fiscal stimulus" from the 2017 tax reform and spending packages will be "key drivers of the deceleration." Key points: - The GOP has relied heavily on a message of strong growth, which is expected to fall back to earth as the stimulus from their tax cut runs out and a ten-year bull market hits its limits.
- Economists say the president's trade and immigration policies and the threat of rising interest rates, fueled by the mounting federal debt, are undercutting the fiscal impact of the 2017 tax cuts championed by Republicans.
- The deficit has exploded in part because of the tax cuts, leaving lawmakers with little firepower to slow a downturn when it comes around.
- Oh, and what's the White House view? According to Larry Kudlow: "My personal view, our administration's view, recession is so far in the distance I can't see it.
The Hill's Alex Bolton lays out what economists are expecting in the coming years, and what it could mean for the GOP going into 2020. Crunch time for US-China trade talks? The White House expects the trade dispute between the U.S. and China to come to a head at the Group of 20 (G-20) summit. Top White House economic adviser Larry Kudlow told reporters at the White House that there was "a lot of opposition to what the Chinese are doing, and the Chinese seem not to like it." "It will come to a head at the G-20 -- I think that's the key point," Kudlow predicted, according to CNN. Trade talks between the two economic powers ended without any agreement at the Asia-Pacific Economic Cooperation meeting over the weekend. The Hill's Megan Keller has more here. GOOD TO KNOW - Lawmakers are considering a $3 billion pension fund bailout to help shore up retirements for more than 1 million Americans, according to the Washington Post.
- Former U.S. Secretary of Labor Robert Reich is calling for the federal government to break up Facebook and other big tech companies.
- A Bloomberg analysis found that credit markets are headed for their worst year since the Great Recession in 2008.
- Randal Quarles is set to lead the Federal Reserve's financial stability board.
FROM THE HILL'S OPINION PAGES ODDS AND ENDS On The Money will be out starting tomorrow and through Thanksgiving but back Monday. That's right, we will be freer that Carrots and Peas, the lucky Turkeys pardoned by President Trump today (without likely objection from any courts). | 
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