LADY AMERICA is a metaphor dreaming/fantasizing about the ultimate American life. An immigrant arrives to live with his cousin in an apartment building where he falls in love with a beautiful blonde girl who lives above them. He begins to fantasize about her and when his infatuation becomes unbearable he decides to profess his love to her only to get rejected. Desperation drives him to be a "peeping tom" only to get caught and humiliated. His only way out of his torment and embarrassment is to return to his homeland.

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