..and this...
Oozing Belly-Button
After the umbilical cord stump falls away (about the second week of life), parents will often notice what seems to be some fairly thick drainage from the belly-button. Usually a belly-button discharge results from an unsuccessful healing, which then forms what we term a granuloma (what used to be described as " proud flesh". This granuloma is a shiny, oozing lump of tissue lurking in the belly-button depths. All it takes to promote healing is one or two applications of silver nitrate in the doctor's office.
The appearance of blood from the belly button is most likely some dried-up blood left behind when the cord-stump separated, and is now being dissolved by water or urine.
Any large amount of discharge, true bleeding, or a bad smelling belly-button should always be evaluated by the baby's pediatrician.
((come to think of it, dd2 nearly had to have this done, she had a little 'finger' of flesh for ages))