martinibuster - 12:24 pm on Jul 24, 2012 (gmt 0) [edited by: martinibuster at 12:58 pm (utc) on Jul 24, 2012]
Or is the Penguin Update supposed to work sitewide and my issue may be simply inbound links losing power?
Those are good questions and observations. It generally starts with your best keyword phrases and then slowly spreads to other keyword phrases, where you start to lose rankings across a wider range of phrases. If it doesn't spread to a wider range of phrases then it could be something else, many other things.
Absolutely, do not panic. Never panic. If you are certain that the links you built are crap, then you're probably starting to rank where you are supposed to rank should your crap links not be useful anymore.
If your links are not crap, and you continue to rank well across a wide range of phrases, then it may not be your links, it could be something else, it could even not be about directly about your site.
But in general, if you have a dramatic loss of traffic and a dramatic loss of ranking across a wide range of keywords, and you know who ever did the needful on your links did a poor job, then it's probably your links.
[edited by: martinibuster at 12:58 pm (utc) on Jul 24, 2012]