Noi siamo nel pozzo.

English Translation

We’re in the well.

Once more the question:
Is there a figurative meaning (in either language)?

Like: “We are in a hopeless situation.”

Or is it just two persons standing at the bottom of a well and one is stating the obvious?

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Seems like they are in the well;-) In anything murkier, I would have put “Siamo nei guai”. (Incidentally we have a fine English athlete called Andrew Pozzi and they always pronounce his surname like “swimming cozzy” and I quietly shout at the tele.

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I have never heard the Italian sentence used in a figurative meaning.
However “Finire in un pozzo di guai.” is used in the sense of “Ending in a very troubling situation.”

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