87 gl wagon electrical system problem

Under the hood of my 87 Gl wagon there is a wire by the battery that glows bright red every time I start the car. When I unhooked the wire the electricity was totally cut off to the rest of the car.

Any ideas how to remidy this problem, and is it a common problem among subaru.

Also does anyone know a waht a good cheap muffler since my looks like someone put a cherry bomb in the tale pipe

There are lots of wires by the battery on an 87 GL-- The whole front wiring harness comes in next to the battery. Perhaps whichever wire it is is glowing because its corroded. Corroded wires is a pretty common problem and can cause the car to do all sorts of weird things.