If you have something that you don't want anyone to know, DON'T POST IT ON FACEBOOK.
     I disagree with Eric Schmidt's statement completely. I feel that everyone is allowed to do whatever they want, as long as it's legal. If they want to keep that "private" then they should make sure it doesn't end up on Facebook, Twitter or any other online social media. I understand that with the evolution of technology it's difficult to get away with doing something stupid or embarrassing without someone recording it on a video phone or snapping a picture. However, that's where responsibility and trust come into play. Don't get wasted and run around in an animal costume in a large crowd - that's bound to end up on the internet! Do that in the "privacy" of your home, or in a group of people that you trust won't display your interesting behavior online.
     I feel like there is a difference between private and secret. A secret is something you don't want ANYONE to know - it's typically something you're embarrassed of, or that you're afraid to reveal because it could be detrimental to your health, safety, job, etc. Private is when you just keep to yourself - when your every move isn't tracked and put on TMZ. Private is being mindful of how much information you share and who you share it with. 
     Do what you want to do - just be careful where you post it, because you never know who might see it.