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Douglas Harper's Etymology Dictionary
schmear

1961, "bribery," from Yiddish shmir "spread," from shmirn "to grease, smear," from Middle High German smiren, from Old High German smirwen "to smear" (see smear (v.); compare slang to grease (someone's) palm "to bribe"). Phrase the whole schmear "the entire affair" is attested from 1969, originally show business jargon,

Wiktionary
schmear

n. 1 A spread that goes on a bagel 2 A batch of things that go together 3 An aggregate vb. To spread something (often a schmear in the first noun sense)

WordNet
schmear

n. (Yiddish) a batch of things that go together; "he bought the whole schmeer" [syn: schmeer, shmear]

Wikipedia
Schmear

__NOTOC__ Schmear is a word of Germanic origin, equivalent to 'smear' or 'spread' (usually fat or butter). In some Germanic languages, the cognate of smear itself means butter.

Origin: Before 900; (v.) Middle English: smeren, smirien to rub with fat, anoint; Old English: smirian, smerian, smerwan; cognate with Dutch: ; German: , Icelandic: , Old Norse: smyrja, smyrwa; (noun) in current senses derivative of the verb; compare obsolete smear: fat, grease, ointment; Middle English: smere; Old English: smeoru; cognate with Dutch: ; German: , Old Norse: smjǫr, Swedish: smör - butter; Danish: smør - butter; Greek: - rubbing powder.

The use and spelling schmear or shmear in American English is a direct loanword from Yiddish, where its original usage referred to cheese. In modern usage it has extended to anything that can be spread, such as cream cheese spread upon a bagel. In some cases, it refers to "an entire set or group of related things", or the expression "the whole shmear".

As a slang term, the word in Yiddish also refers to a slap on the face, primarily when disciplining young children.

It can also refer to bribery, as a "little extra" spread on top.