Hedge fund industry veteran Barton Biggs warned of a global double-dip recession and a 20 percent market drop if the governments do not fix the problem.

Biggs, speaking to Bloomberg TV, said “God gave Noah the rainbow sign, No more water, the fire next time,” citing the old Negro spiritual “Mary Don’t You Weep.”

He said the markets are giving the governments warnings that they are not heeding. Now, there is the possibly of real catastrophe.

In response to what he predicts to be a global double-dip if government inaction continues, Biggs is now only 20 percent long stocks (the other 80 percent presumably in cash, bonds, or other safe-haven assets).

When asked what would save the markets, he said a $400 billion TARP-like cash injection bailout program for European banks, a 1 percentage point cut in ECB interest rates, and a U.S. stimulus package attached to entitlement reforms.

Biggs, managing partner at Traxis Partners, overseas over $1 billion in assets.

On Thursday, global risk assets tanked again on worries Biggs cited, namely the European debt crisis and the U.S. economy.

The Dow Jones Industrial Average plunged 3.51 percent, oil plunged fell 6.3 percent, and the euro dropped as much as 180 pips against the safe-haven U.S. dollar.

Please email Hao Li at hao.li@ibtimes.com.

Citigroup U.S.