Lyric discussion by RockStarWannaB 

So many interpretations of this great song here. I wouldn't argue against any of them but I have one of my own which I submit for your consideration.

 I've loved this song for well over 20 years now and I always imagined it was about a man cheating on his wife with a much younger woman.
 Released in 1980 it is not unreasonable to assume that a cheating spouse in his 40's at that time may think of contemporary radio as "jungle music".  He tells his young lover to turn it down so as not to draw attention to themselves as they "Drive West down Sunset to the sea"  They'll hang out at the beach and party for awhile, eventually the evening leads to sex.  The line " I should know by now it's just a spasm" tells me he realizes that sex, specifically an orgasm is quite literally "just a spasm."  Cheap in a moralistic sense but far from free with respect to the cost to his marriage and his conscience.  He knows damn well "love's not a game for three" and is fully aware of the inevitable consequences of his actions.  
 He has shared knowledge of his affair with a few close friends.  I see "cotton candy" merely as a reference to his lovers youth.  These friends offer advice but he will have to "live and learn" through his mistakes.   
 The only San Francisco reference I see in the song is "San Francisco show and tell."  I don't feel this has anything to do with the songs locale, it's just an ambiguous phrase which fits very well.  I think the entire setting is in and around L.A. 
 I've enjoyed reading other peoples interpretations of this wonderful song.  I would love to hear any feedback about mine you may have to offer.

@RockStarWannaB I think you are right on point! the only thing I would add is this isn't the first time i.e. multiple young "bad" woman the Babylon Sisters. I don't think its by Accident the Background singers say "Tell me I'm the only one". There heading to Malibu for a weekend not just a cheep hook up, maybe Shutters. the second verse is the morning after that starts great then he's jetted back into reality.

@RockStarWannaB

I agree with most of this. I, too, see it as in and around LA, specifically to the reference to driving west on Sunset to the sea.

While something that approximates Santa Ana weather conditions can occur all along the coast, the name "Santa Ana wind" is by far most closely associated with S Cal.

To me, the actual place you would be if you followed the directions and consider the descriptions, it puts you in Malibu.

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