Peg

In this song, Peg is an aspiring actress who is breaking into the business. It's told from the perspective of her ex-boyfriend, whom she ditched because he couldn't advance her career. Speaking with the Wall Street Journal, Donald Fagen of Steely Dan explained: "Imagine that 'Peg' takes place at a seedy photo shoot in LA in the 1950s. All of the lyrics are from the perspective of the jilted boyfriend, who was still hanging around. The scene is seedy because show business is seedy. Even what most people think are the heights of show business still has the seediness of a vaudeville dressing room." The song begins with this guy watching her pose for racy photos ("So won't you smile for the camera"). In the second verse, he pulls out an old letter she wrote to him and does a little reminiscing. In the chorus, he warns her that karmic payback awaits: "Peg, it will come back to you."

The 1950 movie classic All About Eve inspired the lyric. In that film, Bette Davis plays a famous actress whose secretary, Eve Harrington (played by Anne Baxter) uses her position to become an actress herself.

Many listeners thought Peg in the song might be working in adult films. Considering where the band got its name, this seemed plausible.