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If you can rule out your two-year old's artwork, chances are that white chalky stuff on your basement wall is known as Efflorescence, which is Latin for "white chalky stuff." Efflorescence is a kind of psoriasis that concrete gets when it is damp for too long. You see, Johnny, concrete is made of lime cement and stone. The white chalky stuff just tells you that the bonding agent that holds your wall together is having a chemical breakdown. If left untreated, the water inside your foundation wall will, over time, leech the lime cement out of the wall, leaving nothing to hold it together, which could lead to your nervous breakdown. Want some water damage advice before it happens? Prevent it from happening and keep your eyes on those walls!