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Is there a generic name given to fonts like this? I would also like to know if they are hand made or generated by an application.

Screen shot of NE. Both letters made of other words

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It is called a "word cloud" or "tag cloud". I dont know if there are any fonts to make it. But you can do it with many webtools (such as wordie) or better you can render it manually using Adobe Illustrator or InkScape.

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