First, have you thought about some training for both you and the dog?
Second, you don't say how much exercise he is getting per day. Sounds like part of it is burning off steam but the biting and distructiveness is not acceptable.
I would make sure he is getting a lot of exercise, at least an hour of hard running, chasing the ball etc. Going for walks is not enough exercise for most dogs.
When he goes into "psycho mode" mark the bad behavior with a word such as "yuck" (make sure is it not word you use a lot in everyday conversation) and put him in his crate for about 5-10 minutes. It is important you mark the behavior before putting him in his crate, therefore you are punishing the behavior and not making the crate a bad place.
Think of it this way, when he stays acting crazy it's his way of telling you needs a time out in his crate. If you mark it with the word correctly and everytime he acts out he gets a time out in his crate, the behavior should stop.
Please make sure he is getting enough exercise and have patience the stopping of the behavior will take time and persistance on your part. Good luck.