Monday they closed the banks so the banks could transfer Cypriots’ savings to the EU.
The bank holiday was extended to Tuesday, and then Wednesday on well-founded fears that the fractional reserve lending system in Cyprus would be immediately destroyed.
Surprising probably no-one, the bank holiday has been extended to Thursday, and the ATMs in Cyprus are all empty of cash.
Also not surprising, there are official denials that the same sort of direct theft from savings accounts is being considered for Spain as well, which should set the smart people in Spain to emptying their accounts and the dumb ones will possibly be hammered within a year. Oh, and the bondholders for these countries will NOT be getting a haircut as long as the game of musical chairs continues.