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Default Wiring problems, and possibly unsafe old wiring

Hi,

First of all, I have a circuit that started tripping every time a large
appliance such as a washing machine or a dishwasher was used. I had no
money for repairs, so I just stopped using the dishmachine and ran an
extension cord to another circuit for the washer, but now the light
fixtures attached to it have stopped working. A voltmeter shows that
there is voltage going to the fixtures, and I've tested the bulbs to
make sure that they work. Any ideas? This house was built in 1935,
and the wire running to this circuits breaker is a really old one with
that cloth insulation, probably the original work. Is this something a
DIYer would have a chance of fixing without burning the house down?
If not, any ballpark guess on how much an electrician would charge for
something like this?

Second, while looking at the wires in the attic, I'm kind of skeptical
about the craftsmanship of the person who installed it. Some of the
wires are just loose, running 15 feet or more unanchored to anything.
Some are connected to porcelein discs which are connected to wooden
beams, and others are just stapled to the beams. Many of the wires and
porcelein discs are buried in sawdust-like insulation so deep you can't
see them. I had the home inspected before I bought it, and I don't
recall the inspectors saying anything about this. I'm not an
electrician and I don't know much about it, but I would think this is a
fire hazard and I'm concerned about safety issues. I've already lived
in one home of similar age that caught fire due to electrical issues.
What do you think?

 
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