Lyric discussion by ma0sm 

Beck recorded himself playing slide guitar on a four track for about an hour. Then the guy he was working with Took part of the noodling and added a drum loop that became the main riff we know and love.

Beck then started rapping stupidly on top of the looped guitar riff, completely improvising. He was so embarrassed at the lyrics that he'd come up with that he just started singing 'I'm a Loser baby' in the chorus.

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