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Affiliate links - to hide or not to hide?

affiliate links

     
9:47 am on Oct 6, 2006 (gmt 0)

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I have read the threads regarding affiliate linking which gave me some good ideas but nothing recently so I want to ask advice before I start modifying my site.
In the last 2 weeks I have seen a massive drop in Google traffic. The only pages still ranking well are those with no externally pointing affiliate links. As the copy on every page is unique and original I must assume that Google has penalized the pages with links out of the website.
The question is, do I wait and see if the traffic returns or so I react now?
If I react by hiding the links what is the latest advice on how to do it?