Do outbound links leak pagerank?

When I read about this Outbound links PR leakage issue…my first reaction was “what nonsense!”. I mean why would my PR suffer when I am giving some contextual links to my visitors, to read some references? Here are some of my learnings -

Nofollow Links & SEO

Nofollow link is a mechanism to tell a crawler not to follow a link. A link with nofollow has no “link juice”. When should we use them? How should we get backlinks if everyone uses “the nofollow condom”?