A theory of Mine? What do you think?

A couple years ago I thought about something. I have look at a lot of stats from my MLS, but could not conclude if I was correct in my thinking.

Here goes. Inflation or appreciation in homes consist of many factors. One factor I thought was artifically inflating home prices was 100% financing. I am sure you know the scenario. Your buyers go to the lender and you find out that they don't have any money. Well maybe at least earnest money. That's okay, 100% financing. You show houses, find one and you write it up, for full price plus 3% for closing costs. Full price because the market is hot and this one is going to sell fast. The seller's mutually accept. Life is good, Right?

Apprasier comes out, and says okay I can find some comps to fit this. How though. It is a domino effect, the comps did the same thing. One starts and they all topple. Have you ever experienced this? 

Am I crazy or is this plausible?

Golden Age to Dark Ages

When I started in Real Estate it was the "Golden Age". Phones rang, buyers looked, multiple offers came, lenders loaned, sellers sold and life was good. After 4 years I have seen a lot. Today is a whole new age. Granted we have very low rates and now homes are more affordable than ever but what happened?

Credit is good, but does it become a false sense of security? When everything is bought on credit who ends up paying. The banks do. But what happens when the banks aren't paid? Well then the feds buy them. Where does the fed get this money? It is a trillion dollar question? Ultimately, it is you and me, joe and jane taxpaper. 

Is this right?