Negative yields: What could go wrong?

CNBC reports:

A big chunk of the government bond market has gone negative: JPMorgan estimated that in January, around $3.6 trillion worth of developed market government bonds—or 16 percent of its Global Bond Index—was at a negative yield.

That's something that can spur new problems, Goldman said, noting concerns that pension funds and insurance companies may struggle to meet guaranteed payouts.

"Today's very low or even negative fixed income yields often are not large enough to match future liabilities," Goldman said, noting insurance companies are generally assuming forward rates will be positive and above current rates. If low or negative yields persist, making guaranteed products work will become increasingly difficult, it said.

The lack of supply and demand in the money market has consequences. Bad consequences. Few people have talked about Obama's redistribution of senior citizens wealth.