Does a situation have to be bad? Can I say: How's the car rental situation?

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Does a situation have to be bad?

Can I say: How's the car rental situation?
 
No it doesn't.

Yes, you can.
 
The late comedian George Carlin once noted that terms such as "emergency situation" are needlessly wordy. There isn't an "emergency situation," there is an "emergency."

Everything is a "situation," he noted.
 
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