How it's Used:
"Man, five dollars for a candy bar? What a gyp!"
What You're Actually Saying:
"Man, five dollars for a candy bar? You're a filthy Eastern European immigrant."

Wait, What?
Gyp is thought to be short for "Gypsy." And long before that term meant a group of odd people who roam the countryside running scams, it was an ethnic slur for the Romany people who immigrated from Eastern Europe. The term "Gypsy" evolved from the habit of calling the people Egyptians, because they sort of looked Egyptian and the locals were apparently too shy to ask the people where they were actually from.
The point is the negative meaning of the word started centuries ago, and even now plays off the common stereotype of Gypsies as sneaky, thieving con artists. At least they don't break all your shit like the Vandals, though. Assholes.

How it's Used:
"Wow, look at that! The sun's shining, the bluebirds are singing ... why, I think it's a lovely day for a picnic!"
What You're Actually Saying:
"Wow, look at that! The sun's shining, the bluebirds are singing ... why, I think it's a lovely day to lynch a black person!"

Actually, no, this is what you're really saying:
"Wow, look at that! The sun's shining, the bluebirds are singing ... why, I think it's a lovely day for a picnic!"
Wait, What?
Confused? We're including this one just to save everybody the trouble down in the comments. If you bring up the topic of racist words, it's usually only minutes before some helpful expert will chime in with:
"Did you know 'picnic' dates back to lynching parties? It's true, 'picnic' is short for 'pick a n*gger.' As in, pick one to lynch. So when you eat sandwiches in the park, the blood of African Americans stains your very checkered tablecloth. Enjoy your sandwich, bigot."
This one, however, is bullshit. According to Snopes.com, the word "picnic" actually derives from the totally innocuous French word "piquenique." The other, horrible meaning of the word is found nowhere outside of that one idiotic email forward.
So it was never a euphemism for anything. Or even a real phrase. And if you believed that email, then we have some penis enlarging pills to sell you.
Before you go complaining that we promised eight, keep in mind that we gave you Goth, a term that is probably more insulting to the Goth tribe now than ever before.
Be sure to check out today's episode of S.W.A.I.M.:Looking Forward: 4 Ways To Make Fun of Obama, and the latest batch of our Top Picks from around the web and the Cracked.com Mirth Canal.
And now that you know how racist you are, it's time you learned why you're a pervert in 8 Everyday Words With X-Rated Origins. And while you're at it, go ahead and find out why all those big fancy words you use to look smart really make you look like a dipshit in 9 Words That Don't Mean What You Think.