Are you thinking of the "if you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place" quote?
If you look at the full quote [0], it's actually quite reasonable and forthright. He's explicitly warning users that search engines, including Google, are subject to inquiries from law enforcement, and thus, should not be considered secure, rather than dismissing privacy out of hand.
[0]: http://www.schneier.com/blog/archives/2009/12/my_reaction_to...