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Check out The Office if you want to experience it (UK or US) or Curb Your Enthusiasm.

I know there are a lot of awkward moments in both of those shows. But it's silly for a person to feel personally embarrassed by those moments.

I think there just isn't a good term for this feeling of vicarious embarrassment.

I don't know if it qualifies as "good", but the internet has coined a term for it: http://www.urbandictionary.com/define.php?term=wahjah

I can't watch these shows, I cringe too much. Same with the Hangover 2 I recently watched, too much embarrassment...