The bands I was in back in the 70s and 80s used to do a lot of songs by the Flying Burrito Brothers and this is one of their best. I like to think that it's what Gram Parsons was inspired to write after he learned how to play a diminished chord. They called it Hot Burrito #1, probably because it was so tasty.
Obviously, this song inspired me to name one of my songs Hot Potato #1. They both have diminished chords in them.