That's how a senior U.S. military official is describing the aftermath of a September 16 incident in which "private security forces" (i.e., mercenaries) working for Blackwater USA killed between 11 and 20 Iraqi civilians. Witnesses have said the shootings were unprovoked. Here's the full quote from the Washington Post:

"This is a nightmare," said a senior U.S. military official. "We had guys who saw the aftermath, and it was very bad. This is going to hurt us badly. It may be worse than Abu Ghraib, and it comes at a time when we're trying to have an impact for the long term."

These mercenaries don't operate under military rules of engagement, and the U.S. granted them immunity from prosecution immediately after the invasion of Iraq. The Iraqi government should have the authority to revoke that immunity now, but they haven't yet.

So what happens when you put private mercenaries in a war zone with no oversight? More soldiers weigh in:

"They are immature shooters and have very quick trigger fingers. Their tendency is shoot first and ask questions later," said an Army lieutenant colonel serving in Iraq. Referring to the Sept. 16 shootings, the officer added, "None of us believe they were engaged, but we are all carrying their black eyes."

"Many of my peers think Blackwater is oftentimes out of control," said a senior U.S. commander serving in Iraq. "They often act like cowboys over here . . . not seeming to play by the same rules everyone else tries to play by."

Since 2004, the company has received nearly $1 billion in contracts—$833,673,316 from the State Department and $101,219,261 from the Defense Department. Oh, and remember the U.S. weapons that ended up in the hands of a known terrorist group (the same group that has been provoking Iran)? Blackwater may have sold the weapons to the group.

Blackwater is completely undermining any military progress being made in Iraq. And why wouldn't they? The longer the region remains unstable the more money they stand to make.