Yeah, I thought it was hilarious the first time I heard the song because I hear the phrase used all the time. Must be a Southern thing. What's even better is that we usually precede it with a "God damn" too. I was laughing my ass off.

We usually use it more in a slightly different context. Like if someone says something really stupid that makes absolutely no sense (a common occurrence)... one of us might say... "Well god damn, shit the bed." It can also be used when you're bored as fuck and just sitting around as a way to express your boredom.