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Its been around for ages and your friend used it in the wrong context.
If you bought a bag of weed and went home and weighed it and found out it was short you got "jewed".
This saying has nothing to do with nazi's . Its merely said to represent the shrewd business practices commonly found amongst jewish people.
Is it wrong to generalize people ? not really thats life
Would it be foolish to pre-judge someone based on a generalization ? yes
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