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That's the Shit!

Who's the genius that came up with THAT one? This phrase has been recently brought to my attension, and completely baffles my mind. For some reason (and some quality idiotic thinking) this phrase is used POSITIVELY. What the hell? Call me ignorant, but isn't shit supposed to be a BAD thing? Next you're gonna tell me it's good to be a shithead. If you can think of a logical explanation for this, enlighten me; I just don't get it.