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Social psychologists have known for decades that, if we reduce our sense of our own identity – a process called deindividuation – we are less likely to stick to social norms. For example, in the 1960s Leon Mann studied a nasty phenomenon called "suicide baiting" – when someone threatening to jump from a high building is encouraged to do so by bystanders. Mann found that people were more likely to do this if they were part of a large crowd, if the jumper was above the 7th floor, and if it was dark. These are all factors that allowed the observers to lose their own individuality.

It is now clear that the delusional hope that the severe credit and liquidity crunch that hit US and global financial markets would ease has been shattered by the events of the last few weeks. This credit crunch is getting much worse and its financial and real fallout will be severe. The amount of losses that financial institutions have already recognized - $20 billion – is just the very tip of the iceberg of much larger losses that will end up in the hundreds of billions of dollars. At stake – in subprime alone – is about a trillion of sub-prime related RMBS and hundreds of billions of mortgage related CDOs. But calling this crisis a sub-prime meltdown is ludicrous as by now the contagion has seriously spread to near prime and prime mortgages. And it is spreading to subprime and near prime credit cards and auto loans where deliquencies are rising and will sharply rise further in the year ahead. And it is spreading to every corner of the securitized financial system that is either frozen or on the way to freeze: CDOs issuance is near dead; the LBO market – and the related leveraged loans market – is piling deals that have been postponed, restructured or cancelled; the liquidity squeeze in the interbank market – especially at the one month to three months maturities - is continuing; the losses that banks and investment banks will experience in the next few quarters will erode their Tier 1 capital ratio; the ABCP and related SIV sectors are near dead and unraveling; and since the Super-conduit will flop the only options are those of bringing those SIV assets on balance sheet (with significant capital and liquidity effects) or sell them at a large loss; similar problems and crunches are emerging in the CLO, CMO and CMBS markets; junk bonds spreads are widening and corporate default rates will soon start to rise. Every corner of the securitization world is now under severe stress, including so called highly rated and “safe” (AAA and AA) securities.

This is indeed the message that comes from true market prices – that are not indirectly available via the ABX indices. Those prices tell you not only that the mezzanine and equity tranches of subprime CDOs are now worth close to zero; they also tell you that prices for the AAA and AA tranches – that until recently were hovering near par of 100 – are now down to 79 and 50 respectively. Hundreds of billions of subprime RMBS and senior tranches of CDOs are still being evaluated as if they are worth 100 cents on the dollar. What the ABX is telling you is that they are worth much less; thus the losses from subprime alone are an order of magnitude larger than recognized by most firms.  But most firms are not using such market prices – or their proxies – to value their illiquid assets.

He'd phoned twice the week before, and I'd returned the call to his hotel voice mail on both occasions, but we hadn't connected. So when the 350-pound biker widely known across the deep south as "Grizzly" called me again last Thursday, I was as prepared as could be for another of his semi-annual communications.

ut let’s not pretend that what happened this week is free from comparison. I don’t mean to maliciously call GameSpot out on this, but if you didn’t know, they sell a lot of their content coverage. The front-door rotation spots, otherwise known as “gumballs,” on the homepage are paid for by game publishers at $7,000/2 weeks (March 2006); and if you remember back, they absolutely whored themselves out to Vivendi for the release of 50 Cent: Bulletproof, a game that everyone and their mother knew was going to be terrible. (50 Cent: Bulletproof page, a developer interview, a positive preview, and page 21 of GameSpot's Media Kit which is made for advertisers).

The modern culture of rights, and the value system that proclaims discrimination the greatest of public policy evils, finds it difficult to cope with this plain reality. It leads to an intellectual blindness that empathises with humankind in general but not in particular. He loves mankind, Voltaire wrote, therefore he does not need to love his neighbour. Many religious leaders and moral philosophers seek to extend our natural, but not unlimited, capacity for solidarity with others by calling on sacred texts and abstract principles. They are rarely very successful in this endeavour, and their efforts are usually most effective when they provide validation of their followers’ instincts.

Morning Edition, July 15, 2004 · A British street artist known as Moose creates graffiti by cleaning dirt from sidewalks and tunnels -- sometimes for money when the images are used as advertising. But some authorities call it vandalism.

As the man who oversees about $20 billion of fixed-income investments at American Century Investments, we revisited with Keegan as part of today’s The Game column on the recurring foibles of Wall Street. Deal Journal: You were right back in April. You called it all. Why does Wall Street keep messing up? Jim Keegan: It’s too profitable to stop. It’s too profitable at the individual level, so the individuals interests are not necessarily aligned with the company’s interest. Pay me now and you pay for it later. There is no clawback. Employees can walk away with hundreds and tens of millions of dollars. And someone else will hire them to do it again.

Transformational Government, dressed in the language of consumerism, is what NO2ID calls “the database state” – management of citizens’ lives through centralised computer systems; pooling and cross-referencing information about people gathered on any pretext for any purpose, amounting to mass surveillance. Once your relations with the state preserved your privacy, being limited to relationships with bodies that were separate from each other. A single department was powerful, but it did not judge you on your whole life. Transformational Government changes that. You will have a single permanent record, and your identity managed (or determined) by the state. That will be held together by cross-referencing databases – which is what a National Identity Register is needed for. ‘ID cards’ are the concrete expression of this register, but strictly speaking are not necessary: numbering you and making constant reference to the central file will do.

Martin Stabe must be on performance enhancing drugs - his posting levels are through the roof. It’s all good stuff, especially on the Richard Sambrook vs. Andrew Keen showdown at the Frontline. Keen’s new media vs. old media gamble is that infamy as the blogosphere’s contrarian punchbag will help sell his book. (Jeff Jarvis memorably called Keen’s bluff in this post.)

Danto has argued that what all works of art have in common is that they all relate in some way to an `artworld', to an accepted artistic theory, or to the history of art as a whole. So if someone puts a toilet in the middle of an art gallery and calls it art, then it is art if (and only if) it makes sense in the history of the development of art over the centuries. Maybe the history of art was just ready for a toilet in an art gallery then, and what distinguishes it from ordinary toilets are the interpretations which those educated in art history put upon it. Danto has a view of the development of the history of art inspired by Hegel. He claims that eventually, through its growing consciousness of itself, art becomes philosophy and thus comes to an end.

"The online encyclopedia is set to trial two systems aimed at boosting readers' confidence in its accuracy. Over the past few years, a series of measures aimed at reducing the threat of vandalism and boosting public confidence in Wikipedia have been developed. Last month a project designed independently of Wikipedia, called WikiScanner, allowed people to work out what the motivations behind certain entries might be by revealing which people or organisations the contributions were made by . Meanwhile the Wikimedia Foundation, the charity that oversees the online encyclopedia, now says it is poised to trial a host of new trust-based capabilities."

The one element clear right through representative democracy’s advance across the world has been the centrality of popular rejection of autocratic effrontery, often exhilarating at the time but in retrospect a transitory pleasure. The structure of modern representative democracy (the form of state now called by that name) does not provide a clear model for any community to rule itself in freedom, let alone in reliable serenity and prosperity. What it provides is a practical basis through which to refuse to be ruled unaccountably and indefinitely against your will. Less steadily and on far less egalitarian terms, it also provides a framework through which to explore together what people should and should not attempt to do as a community. Virtually none of the elements of an answer to that question can come from democracy as an idea. Almost all have to be pieced together arduously from somewhere else.

Crudely speaking, the political appeal of democracy lies in its claim to realise political equality. (So, soberly speaking, does its potential political menace.)