What I don't understand is why Cyrpus's president thinks this will 'save' them.
Logically, doing this will result in people not putting any more money in the banks, and removing all they currently have. They have withdrawl limits right now, but once they are removed then people are going to pull out their money.
Then again, logically. Sad thing is that politicians, when it comes to monetary issues, have no logic at all.
I'll be awaiting the inevitable mass rioting and all the entertaining stuff that goes with that - Looting, destruction of property, murders, and (In this case) assassinations. (Seriously - For a move like this someone is going to try to whack the president. Depending on how pissed off the people who guard him are, Cyprus might end up having a new president.)