How does this happen? Are THEY watching what we do online ?

[Guy]

Yes the government stores everything you do online into a huge database. It is automatically stored so nobody looks at it unless they have a reason to. All the big websites are owned by the same people and they do business together. You created your facebook from the same IP address you are accessing yahoo from, all your information is stored under your IP adress, and since you have a facebook all your personal information is linked to your IP address under a huge profile of you.

It's called the National Security Agency.

Facebook was created for the purpose of collection huge amounts of Information about people. It can be used for simple things like advertising or much, much darker things...