This paper examines the short-lived flirtation between psychoanalysis and academia and psychiatry in Europe and the reasons for, and consequences of, the fact that their paths diverged. It is argued that Bleuler's break with the psychoanalytic movement is a crucial and, until now, largely underestimated turning point. Bleuler's separation from the psychoanalytic movement was probably more important for the course it has since taken than those of Adler, Stekel, or even Jung. Bleuler's analysis by correspondence by Freud, and its failure, was of paramount importance for the future relationship between Freud and Bleuler, and for Bleuler's assessment of psychoanalysis.