Quote:
Originally Posted by Colmike7
What if someone does some greyhat work and makes those crappy sites good with SEO, causing the linked sites to benefit from the SEO? 
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In that case I think it will all depend on the status of your site. If it's old, established, has lots of quality backlinks and has good metrics then I'd guess it would bounce back with or without the greyhat change.
But if your sites are new then google doesn't really care about you. Your site may be on the naughty list forever, or it may bounce back but take a long time.