This time the creators decided to go with the technique overused in Revenge: they opened with a scary scene, then rolled back a little to show how the story got to that point. I think it's the lamest type of intrigue there is.
Kit, the kids and sister wives live as a nice family. Grace is very much obsessed with her abductee experience, she constantly draws pictures of the creatures and dreams of the moment they'll take her again. Alma however doesn't share her views and tries to forget about what's happened to her (of course she is, the aliens had her killed for a while), plus she's a little concerned that an axe murderer lives in her house now. At first she tries to channel Grace's energy somewhere else by sending Kit to please her. As Alma lies in her bed, listening to the sex noises behind the wall, the light fills the room. She thinks it's the creatures, but it's just Billy and his friends trying to burn their house down.
Long story short, one night Grace tells Kit that she doesn't want to hide anymore and just a moment later Alma kills her with an axe ('cause she disagreed on that), and so it's her turn to go to the Briarcliff, where she dies a year or two later.
Jude, renamed to Betty Drake, plays table game with Pepper and some other lunatics. Timothy interrupts to inform Jude that he's now the Cardinal of New York and that the church is selling the institution to the state. But he promises her he'll get her out of this place. A promise Lana Winters gave her before (and just as valuable).
New patients arrive at the Briarcliff and in one of them Jude recognizes the Angel of Death. Death is being very intimidating (she even stabbs one of the uncooperative patients) and wants to make Jude her bitch. This all lasts till Judy beats the crap out of Death, but then she realizes that the woman she roughed up was someone else. Oopsie.
Jude is taken to her former office to have a talk with the doctor (I loved how she tried to choose the most "normal" answer). From her conversation with the doctor we learn that Timothy Howard left two and a half years ago and hasn't sent for Jude ever since, and that poor Pepper passed. Which means Jude is completely cuckoo.
Lana Winters is at the bookstore to do some reading and sign the copies of her first book Maniac: One Woman's Story of Survival, which's been a bestseller for ten weeks now. She reads an extract from her novel, and it's clear that she embellished her story quite significantly. I guess what's happened to her doesn't seem horrible enough now that she's out.
As she autographs the books and bitches about warm beverage, Kit Walker comes to her desk. They go for a coffee and Lana's acting very vain. When she says her next book will be about Mr. Bad Santa (and the seven nuns he killed), Kit loses his temper and asks why she isn't writing about what happens in Briarcliff. "Things change", she replies. He then tells her about his latest visit to the asylum when he came to pick up Alma's body. He saw Jude, mad, talking about how she flies away one day.
Lana calms her guilty conscience by saying Jude was the one who created the place she's now locked in and goes back to the store. Kit drives away in a rusted truck.
2012. Johnny pays a visit to the book store to pick up the last available autographed copy of Lana's book. The owner declines to sell it, so Johnny convinces her by telling what he's planning to do with that copy: he wants to show it to Lana and tell her he is her son before putting a bullet to her head. The owner hands over the book, but something tells me she didn't survive this unfortunate encounter anyway.