Stite-wide linking / penalties

[futureX]

I have been out of the google loop recently, and people are now talking about site-wide linking being a problem and too many backlinks per months also being a problem.

If google decides you have 'too many links' or thinks you have bought these links (the criteria for which we dont know, which is probably best anyway) what kind of penalty does it impose?

Does it specifically damage the anchor text in the links from the 'spammed' links, or the pages linked in those, or does it affect your whole site?

Or are there no answers to this? lol

[jakegotmail]

I dont think they do it on a whole site basis. per keyterm they feel is being spammed... least what I have found.