"Experts say that Iraq may have nuclear weapons. That's bad news - they may have a nuclear bomb. Now the good news is that they have to drop it with a camel"

In this quote, David Letterman is making an ironical remark about the scenario in Iraq. He is referencing the belief that Iraq might possess nuclear weapons, which is viewed as a severe danger by lots of experts. However, Letterman includes an amusing twist by saying that the good news is that Iraq would have to utilize a camel to drop the bomb. This is a play on the stereotype of camels being a typical mode of transportation in the Middle East. By utilizing this joke, Letterman is highlighting the absurdity of the situation and poking fun at the idea of Iraq having nuclear capabilities.