Sigmund Freud. Cigar. Hill reclining on an analyst's couch. Talk of dreams. Freud, says Hill, believed that dreams helped us work out certain urges that society has deemed unacceptable. Urges such as the desire for a world devoid of drivers who seem to think there's a stop sign on every corner, when that is clearly not the case? But I digress. For the good Dr. Freud -- who looks like the insane (if perceptive) freak he must have been, with a gleeful look on his face as he grins at the air and sucks mightily on his cigar (in this case, a cigar is not just a cigar) -- though we might wish to kill an oppressive father, this would be too horrible to bear, so we instead dream of defenestrating our bosses. The mind modifies our dreams to keep strong emotions at bay, as less emotion makes a good automaton. And so thrives society. The difference with Oz, says Hill, is that they actually throw the boss out of the window instead of just dreaming about it. I'm wondering where in Oz, exactly, one would find a window.
Flashback to Guerra shanking Alvarez. In the infirmary, Alvarez pulls the bandage back from his wound as Leo strides in, demanding to know who did the dirty deed. Alvarez has no idea, as everything happened so fast, so there's really not much Leo can do. Then Leo pulls back the bandage and remarks that Alvarez was pretty lucky -- a quarter of an inch difference and Alvarez would be dead, dead, dead. This observation prompts Alvarez to wonder if he's headed back to solitary. Leo says no -- while he'd love to see Alvarez rot in solitary (Alvarez looks taken aback by Leo's compassion), it's back to Gen Pop, where he might not be so lucky next time.
So Alvarez is suddenly all better and back in circulation; he strides up to a table where Morales, Guerra, and some other guys are sitting, and tells Guerra they need to talk. Guerra wants to know if Alvarez wants to get shanked again (everyone giggles). Alvarez kicks one guy's chair and asks if he can sit down; the guy says, "Blow me" (everyone giggles). But then Morales slams his hand down on the table, which makes a really loud, echo-y noise that sounds suspiciously like a synthesizer, but then that's Morales for you, and everyone shuts up. Because Morales just isn't funny. So Alvarez sits and tells Guerra that he knows he tried to kill him. Guerra protests, but Alvarez isn't buying it -- you were supposed to stab me in the shoulder, but you came really close to my heart. Even so, says Alvarez, I won't retaliate. Morales looks really serious, because he's not funny, and tells Alvarez that, while he's not welcome back into the fold, he will guarantee that Alvarez will meet no harm. Guerra's bummed, but Morales stands firm. "All scores are settled," he says.