Why are the colors in Illustrator and Photoshop so off?

Question

Hi,
Let me just start off by saying I have the color mode in both Illustrator and Photoshop set to RGB. Yet, there is a noticeable color difference between a picture on the internet and when I paste it in for example Photoshop.
Picture from the internet:
Picture when pasted in Photoshop:
It's the same thing in Illustrator. And this is not just with pictures by the way, it's affects all the colors I use, which is a major pain in the rear.
Anyone know a fix?

Answer 1

Well, my suggestion in post #13, was to help me find out what the cause of your problem is. It doesn’t solve your problem permanently but temporarily, only for the current session of Photoshop or Illustrator by making these programs show your image without applying any color management conversions.  So, you have to do this every time you open such files in these programs.
If you want to understand what is going on and be in control, you have to go through a lot of walls of text unfortunately .
I’ll try to explain it roughly but if you don’t understand it you need to read more about color management.
You are using Safari and this is how its color management  works:
https://developer.apple.com/library/safari/technotes/tn2220/_index.html
on that page it says:
"Important: For images that are not tagged with a color profile, their color values will be displayed on the screen by Safari with no optimization or adjustment for differences between devices in how they render colors. This may result in the colors not being displayed as originally intended"
This made me think that like most images on the web, the image you are using doesn’t have a color profile. In that case, assuming a certain scenario based on your input, the reason it is displayed differently from Photoshop and Illustrator is because you have a color profile of your monitor used by your system that is different than the color space used for the display of the image. By default RGB Images without a color profile are displayed using  the color space set for the working space in the Color Settings of Photoshop and Illustrator. Also by default this color space is sRGB.  If your monitor was also with an sRGB profile assigned in the system, which is the case with all monitors that come without a color profile provided from the manufacturer, you should have not experienced this problem because Photoshop and Illustrator will see that the color space you want to display your image is sRGB and your monitor is sRGB, and there will be no color conversions because both color spaces, source and destination are the same.  Unless someone else has setup your system ,color management, and installed a monitor profile,  my guess is that the manufacturer of your monitor has provided a color profile installed in your system that is not sRGB.
When you choose View > Proof Setup > Monitor RGB, this in effect turns off the color management because you are displaying the image in the same color space as the one assigned to your monitor.
If you want to turn off the color management permanently which will be valid only when displaying images in the sRGB color space, you can assign the sRGB color profile to your monitor. This will show the images on your monitor with the same colors as those displayed without color management in the other applications and choosing View > Proof Setup > Monitor RGB will make no difference.
Non color managed programs can display the color only in the way your monitor displays it. Color managed programs simulate other outputs on your monitor. The only way to match the display in color managed and non color managed software is to turn off the color managed software. This will display the same color values with the same color in all programs on your monitor.
The purpose of the color management is to allow the viewer  see the colors as intended (the way the creator sees them when creating the image). Different devices and media output the same color values differently resulting in different color. Therefore, when the viewer uses different device or media the colors if not color managed properly will look different or not as close as possible.
When you turn off the color management, or even when it is on but not properly applied, which I suspect is the case in your situation, you can’t be sure that the colors you see are as intended. In other words, you can’t tell if an image is supposed to look the way you see it, and you can’t create images providing means that will allow others to see them the way you see them. 
So, for whatever reasons you want to make colors look the same in all your programs, have in mind that this is valid only on the current state of your monitor, and this also cuts the possibility to see and send to others colors as intended.