Azizi-

Your query about "two bits" is also related to "pieces of eight" from the days when pirates plundered the Spanish Main (wherever that might be!).

The phrase "I'm not broke but I'm badly bent" appears to occur in more than one song besides "The Panic Is On" as posted above. Here's a case in point:

I Ain't Broke but I'm Badly Bent
(Anon. from 1930's)

I'm a going back to the country
I can't pay that rent
No I'm not completely broke
But, brother, I'm badly bent;
I can't understand where my money went
But I ain't broke, just badly bent

When I get back to the country
I'll be living in a tent
Ma and Pa will surely be mad
'Bout all the money I spent
I can't understand just where it went
But I ain't broke, just badly bent

Well I had a lot of money
But to the city I went
I met too many good looking girls
And that's where my money went,
And now I know just where it went
I ain't broke but I'm badly bent

I can't understand where my money went
But I ain't broke but, brother, I'm badly bent.


Cheerily,
Charley Noble