What is this?

I was taught in school many years ago not to drench a bike when washing it....water gets into connections and washes the dieletric grease out, and over time will corrode the connections and give you all kinds of hard to find electrical gremlins. I saw it first hand in our school shop. Riding in occasional rain is diff then forcing water, even with a hose, into the bike regularly to wash it. Use a wet cloth to wash, then dry with a dry one. It takes a little more time, but you won't see your connections beginning to die like in your pictures.

Thanks for the advice. I guess I'll stop using the hose on the bike and replace the grease that is trying to run away.:laugh:
 
im guessing the oil is slowly leaking out from the rubber gasket and running down the wires into the wire loom. When you wash it the water also gets backed up in there and creates your oil water mixture...of course if the oil in your crank case is good tho...if your oil in your crank case is the same milky mixture then the pressure created in the crankcase is pushing it out thru the rubber piece....just a guess tho
 
where does the other end of the wire goto. is there anyway that a small oil leak somewhere else is dripping into the wire loom and coming out there. like others have said it then would get mixed with water somehow to create your gism that you have there.
 
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