Anything that Matt Cutt's say take it with a pinch of salt really
I have never heard Matt Cutts provide any proper explanation to any questions asked.

Since Penguin and Panda got released almost in same dates, it was a great confusion for everyone. Many ask for solutions for Panda but when we analyze , it could be a Penguin issue and vise versa. I guess goog need this confusion to be there in existence.
It all boils down to what Google considers the legitimate way of improving the ranking of your website. Google has given in its guidelines certain practices as being "spamming techniques" for the modification of website rank. These include keyword and Meta tags stuffing, invisible and tiny text, page redirects, and link-based manipulation. Although stuffing techniques can be easily detected, it is not quite clear what Google means by link-based manipulation. Many linking techniques even those considered white hat, have now come under a cloud of confusion.
However, it is quite clear that Penguin is targeting websites that are building a powerful backlink profile through unnatural link exchanges. This also does not mean that all reciprocal linking is frowned upon by Google. It comes down to, how natural is your link exchange, and the level of mutually correlated content. Therefore, if you are depending on link exchanges and backlink warehousing, it is obviously out of the question now. Even when you are exchanging links across websites with co-related topics, it is necessary to consider the quality of the content on these sites because of the Panda update.
Resource links:
http://www.seobythesea.com/2012/08/g...ent/#more-8432
http://moneyctl.com/seo/top-5-seo-my...panda-updates/
Regards,
Shawn
RightInTwo (09-04-2012)
Google will change things up in a few months when they release Bird Dog 1.0
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