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“I haven’t felt good recently. My mood is shot, would you like a waterfall that’s black, back home I felt much better, cherry tarts and Mom’s hot breath keeps you going and rolling along life’s highways.” This is an example of what type of thought process?
What is loose association?
DSM V calls this "derailment" and if it becomes extremely severe, so as to become essentially incoherent, it is sometimes referred to as a “word salad.”
In mild forms, derailment may represent severe anxiety or evidence of a schizotypal character structure. In moderate or severe degrees, unless the loosening is a product of malingering, it is an indicator of psychosis.