Lyric discussion by grouping 

O.K., guys. Time for your friendly neighborhood librarian to wade in here. "Strait" means a narrow or tight passage, such as the "Straits of Magellan". When used in "dire straits" it means squeezed (usually financially) to the point of distress. This is not to say that a certain phonetic pun isn't meant here, though I don't know that for a fact. Just thought I'd clear things up a bit.

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