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If I have enough rep to accept edits and I lose 2 rep am I no longer allowed to accept suggested edits?

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    That is correct. Privileges are not permanent, you need the requisite reputation for it, regardless of whether or not you used to have it. – Frank Jul 28 '13 at 21:10
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    This is intended to give reputation points actual weight. If you make a bunch of spammy posts and get downvoted for them, you should lose privileges, as the community is losing trust in you, and doesn't believe you deserve to be given those privileges. It also makes you think twice about dropping 500 rep on a bounty ;) – Robotnik Jul 30 '13 at 6:50
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Yep, if you lose rep through downvoting, receiving downvotes, undoing serial upvoting, placing bounties, you can lose the privileges.

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