“We have a situation here!” The implication of this phrase is that we have a bad situation. This essay discusses the often quoted but rarely studied, Lacan’s “The Situation of Psychoanalysis and the Training of Psychoanalysts in 1956”. Over six decades later, his dense and playful text is still relevant to the situation of psychoanalysis and psychoanalysts. It concerns the survival of psychoanalysis and the ethics of the practice, denouncing the pitfalls of psychoanalytic training while offering a scathing appraisal of the state of psychoanalysis.