Possible Inspiration for Panic?

Not really.

It is a very well known fact that Morrissey was upset about Steve Wright played Wham (can't remember the actual song, I'm Your Man?) after news report of Chernobyl nuclear disaster on Radio 1.

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It's exactly the sort of film he'd be influenced by and that's what artists do, bring together different ideas in order to create something new.
 
I thought it was something to do with posters advertising Smiths gigs plastered everywhere.One band member said something like what if every street was covered in Smiths posters and another replied "panic".

Or maybe I dreamt it
 
I thought it was something to do with posters advertising Smiths gigs plastered everywhere.One band member said something like what if every street was covered in Smiths posters and another replied "panic".

Or maybe I dreamt it

You didn't dream it - Morrissey asked Johnny to imagine what would happen if everywhere was plastered with Smiths posters, and then pulled out a pre-written postcard saying "PANIC ON THE STREETS". I think this was after the radio incident.

Edit: No, it was before the radio incident. Sorry!
 
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