Definition of basket cases:
(n) :
(colloquial) An institution or country in a bad condition or difficult situation (economically, financially or otherwise).
(n) :
(colloquial, potentially offensive) One made powerless or ineffective, as by nerves, panic, stress or exhaustion; someone considered mentally unstable.
(n) :
(colloquial, now historical, offensive) Someone (especially a soldier) who has lost all four limbs.