Anger over Morsy power grab It stems from Morsy's edict, issued Thursday, that effectively allows him to rule the country, unchecked by the judicial system, for the next six months or until a new constitution is finalized. In response, only seven of Egypt's 34 courts are still operating and 90% of its prosecutors have gone on strike, according to Judge Mohamed al-Zind of the Egyptian Judge's Club.
"It's considered the most vicious and unprecedented attack on the judicial authority's independence in its history," said al-Zind, adding there is no room for compromise. "We had no choice."
Edict divides Egypt, unifies opponents
In a country already without a constitution, Morsy assumed legislative powers after Egyptian courts in September upheld the 2011 decision by Egypt's former military rulers to dissolve the nation's first democratically elected parliament.
Now, he's trying to place himself out of reach of the courts, according to Eric Trager, a fellow at the Washington Institute for Near East Policy. That's because Egypt's judiciary consists largely of Mubarak-era holdovers linked to the former ruling party, which represents the greatest political threat to the Muslim Brotherhood's electoral chances, Trager said.
Under Morsy's edict, the laws and decrees he has issued since taking power in June can't be overturned or even appealed until a new constitution is approved.
The order prevents courts or lawmakers from challenging his decisions and shields the 100-man council working on Egypt's new constitution from judicial intervention, either in terms of the group's make-up or what it devises.
Former U.S. diplomat Jamie Rubin said the situation "brings to mind all the fears that people in that part of the world have had about the Muslim Brotherhood when it comes to democracy."
U.S. raises concerns about Egypt Yet Morsy insists he's just trying to protect Egypt's fragile Arab Spring revolution. Jihad Haddad -- a senior figure in the Brotherhood's Freedom and Justice party -- contends the president "cemented the process that would create the institutions that would limit his power, define the constitution and have parliamentary elections so that we can say this is a democracy."
On Monday, Morsy met with members of the Egypt's highest judicial body, the Supreme Judicial Council, which has been critical of his edict.
Afterward, Haddad said the decree was "clarified" -- not overturned or altered -- to reflect that Morsy "did not give himself judicial power" but did provide "immunity for his presidential decisions." He added "the president himself (is) not immune from judicial oversight," though it wasn't clear in what instances or if there was anything preventing Morsy from issuing a new decree so this could not happen.
Analysis: Morsy makes his move
Morsy's decision has spurred a wave of popular unrest, which has already had trickle-down effects. The controversy has hit Egypt's already-fragile economy, where about 25% live in poverty, including stirring its stock market's values to dip 10% at one point since his announcement.
"The majority of the people are really suffering, and they were looking forward to some stability," said former Egyptian Finance Minister Samir Radwan, noting that donors and investors also want stability. "I'm afraid that this constitutional declaration has blown it up."
Some widespread protests have been marred by clashes between anti-Morsy demonstrators and both security forces and Muslim Brotherhood supporters. These have left hundreds injured and at least one dead.
The stage was set Tuesday for a potential showdown on the streets, with the Brotherhood promising a million-man march on the same day a nationwide anti-Morsy protest was planned.
But Monday, the Muslim Brotherhood canceled its Tuesday rallies "to avoid any problems due to tension in the political arena," said spokesman Mahmoud Ghozlan. State TV announced the demonstrations were called off "to avoid bloodshed."
Opposition protesters, meanwhile, have packed Cairo's Tahrir Square for an all-night vigil ahead of their own Tuesday demonstration.
Two of Morsy's advisers have quit in protest of his decision, as well as 22 members of the 100-man constitutional council. (Haddad said 21 have signaled their intention to quit the constitutional council, adding they were "primarily ... back-up members" and hadn't formally resigned.)
And yet Morsy has stood his ground, with presidential spokesman Yasser Ali saying Monday on state TV that the president will not reverse his decree and calling on security forces and the judicial branch to keep public order.
A senior presidential aide, Essam El-Erian, blamed the protests on "counterrevolutionary" forces loyal to Mubarak's party and calling concerns about the decree overblown.
"We are accepting it. We may have some reservations, but as a whole we must take a step forward, not backward," he told CNN.
Haddad, from the Brotherhood's political party, says that polls show "an overwhelming majority supporting President Morsy in his decisions."
But Radwan, for one, disputed that claim.
"The whole population of Egypt is against them," said Radwan, who served during and after Mubarak's tenure, before resigning last year.
Morsy to meet with top judicial body
Whoever one believes, and whatever most Egyptians think, there's been little indication that either side will back down.
Trager said that he doubts popular opposition -- which many in the Muslim Brotherhood view as "heretics" -- will spur Morsy to change course.
And despite assertions from Morsy backers that the popular unrest will abate, there's been no signs of that so far. In fact, Tahrir Square has become more and more crowded since last Thursday's declaration, full of people decrying Morsy as a dictator.
The next few days and weeks could produce more stalemate, more violence or more uncertainty. But experts say the most critical thing for Egypt's long-term future may be what the country's new constitution looks like.
The constitutional council shaping the document has been torn between conservatives wanting the constitution to embrace Islamic law -- or Sharia -- as Egypt's supreme law, and moderates and liberals who want only for Egypt to be governed by principles of Sharia.
With the Muslim Brotherhood's increasing hold on power, non-Islamists may increasingly walk away from that process, leaving the path open to a constitution embracing the Brotherhood's view of an Islamic state in Egypt, Trager said.
"By the time you get that new constitution, it will have been written by an Islamist-dominated assembly that all non-Islamists have completely abandoned, and the new parliamentary elections will likely exclude members of the former ruling party who posed the greatest threat to his authority," Trager said.
Hamas leaders in Egypt for cease-fire talks
CNN's Michael Pearson reported from Atlanta, Georgia, and Reza Sayah reported from Cairo, Egypt. CNN's Jason Hanna and journalist Mohamed Fadel Fahmy also contributed to this report.
Activists in Cairo's Tahrir Square on Monday, November 26, carry the coffin of Gaber Salah, an activist who died overnight after he was critically injured in clashes in Caio. Activists have been camping out in Tahrir Square since Friday to protest what they consid er overreaching powers from Egyptian President Mohamed Morsy. Salah, a member of the April 6 movement known by his nickname "Jika," was injured last week during confrontations between police and protesters on Cairo's Mohammed Mahmud street. 
Thousands of activists attend the funeral of Gaber Salah on Monday. 
Protesters clash with Egyptian police at Simon Bolivar Square on Sunday, November 25, in Cairo. Egypt's powerful Muslim Brotherhood called nationwide demonstrations in support of Islamist President Mohamed Morsy in his showdown with the judges over the path to a new constitution. 
Egyptian protesters hurl stones at Egyptian police at Tahrir Square on Sunday. 
Protesters gather at sit-in tents in Tahrir Square on Sunday. 
Egyptian President Mohamed Morsy waves to supporters in front of the presidential palace in Cairo on Friday, November 23. Thousands of ecstatic supporters gathered outside the presidential palace to defend their leader against accusations from rival protesters that he has become a dictator. 
Morsy supporters gather outside the presidential palace in Cairo on Friday. Morsy insisted that Egypt was on the path to "freedom and democracy" as protesters held rival rallies over sweeping powers he assumed that further polarized the country's political forces. 
Protesters demonstrating against Morsy run from tear gas fired by Egyptian riot police during clashes in Cairo's Tahrir Square on Friday. 
Egyptian protesters throw rocks toward riot police on Friday 
Egyptian supporters and opponents of Morsy clash in the coastal city of Alexandria on Friday. 
A man throws a rock during clashes in Alexandria on Friday. 
Thousands of demonstrators march through the streets of Cairo to protest against Morsy on Friday. 
Clashes rocked the coastal city of Alexandria on Friday. 
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