> I think judgment matters. If you have something that you don’t want anyone to know, maybe you shouldn’t be doing it in the first place. But if you really need that kind of privacy, the reality is that search engines, including Google, do retain this information for some time. And it’s important, for example, that we are all subject in the United States to the Patriot Act. It is possible that that information could be made available to the authorities
Google is subject to the laws where it operates. Just this week a judge compelled Google to comply with warrantless searches (ie National Security Letters) [2]
Any sane person should.
For anything you do online you should ask yourself this "what would your reaction be if this were made public?" The gist of Eric's quote is that what you may consider "private" just isn't due to changing company policies (eg Facebook's continued privacy snafus), bugs, the courts and the legislature.
There is a good lesson in this. Just go to bing.com/social and search for "cheat exam" or similarly embarrassing terms to see why treating the Internet as public is a very good idea.
Disclaimer: I am a Google engineer but the views expressed are my own and don't represent my employer.
[1]: http://en.wikipedia.org/wiki/Eric_Schmidt#Privacy
[2]: http://news.cnet.com/8301-13578_3-57587003-38/judge-orders-g...