© CNNGeorge Soros
Soros is now betting against the U.S. stock market to the tune of 1.3 billion dollars.

We are not in a recovery. What we are witnessing right now is the creation of a speculative bubble of epic proportions and that bubble is going to burst. We've been saying this for some time now, but when a major player like George Soros, a billionaire investor known for positioning himself on the right side of a risky trade starts actively betting against the U.S. stock market trouble is brewing.

Soros has recently purchased 1.3 billion dollars worth of put options on the S&P 500. Some have tried to down play this as merely hedging, but putting everything on one single position (the decline of the S&P) looks more like a calculated gamble than a conservative hedging strategy.

Of course Soros probably isn't going to come right out and tell us what he's up to, but his comments in a recent blog post hinted at the fact that he sees the danger of a repeat of the 2008 crash (though he claims the slowdown in China is the biggest danger).

Maybe Soros is wrong, maybe the bubble will keep on inflating for a bit longer, but keep in mind that in 1992 he made a billion dollars by betting against the pound in what later came to be known as black Wednesday.

Soros doubles down on his bearish bet:

Is the recovery over? :

Soros and his billion dollar win in his bet against the British pound in 1992:

From The Guardian - This is no recovery, this is a bubble - and it will burst: