A Google Penalty for Nofollow Links?

Cutts reveals how to use Nofollow in your link building.

In a recent video by Matt Cutts, the question came up of how no-follow, outbound links affect long-term SERPs and whether Google has a policy of penalizing sites that only link out with nofollow tags. He answered the question clearly enough by saying no, not necessarily. However, reading between the lines, we can see a little glimmer on how Google actually looks at nofollow links on a site.

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