Oct. 12--Fear came to the nation's stock markets last week with terrifying results -- a massive sell-off that raised the spectre in some investors' minds that another Great Depression may be looming.

Investors were gripped by what some economists and psychologists describe as an irrational panic spawned by widespread confusion and uncertainty over the worldwide credit crisis and the future course of the nation's economy.

"People are confused about what is happening," said Alan Stephens, a professor of finance at Utah State University. "They're hearing things about toxic mortgages and credit default swaps -- things that they don't understand. And when you have that kind of uncertainty, it is easy for panic to set in."

There was plenty of the anxiety going around.

Dread of a looming economic meltdown has sent the Dow Jones industrial average down more than 20 percent in the seven most recent trading days. Last week was one of the Dow's worst performances in history. Since hitting a record close of 14,164.53 a year ago, the widely followed stock market index has fallen nearly 35 percent in a deep bear market.

Apprehension that things may only get worse led Karen Kunz, of Ogden, to put off a planned purchase of an HDTV, while Bret Gail, of Salt Lake City, said at the end of the month he will be getting rid of his cell phone. In West Jordan, school psychologist Sandra Jacobs in the months ahead plans to buy only the bare necessities, while trying to hold on to her savings.

"Everything looks real scary right now," Jacobs said of the nation's economy. "And I'm certainly not going to be putting any money into the stock market."

In an effort to head off a full-blown slowdown in consumer spending, the Federal Reserve Board on Thursday lowered its benchmark interest rate -- a move made in concert with central banks across the globe. Yet even the half-point cut in the widely followed federal funds rate failed to halt the market meltdown, with the Dow plunging another 189 points for the day.

The fear of continuing losses and the uncertainty about when a market bottom will be reached is feeding into investor anxiety, said Brian Parry, a professor of psychology at Mesa State College in Grand Junction, Co.

"It is common for those who find themselves in situations they don't understand to look for direction from those around them, rather than to trust their own judgment," Parry said. "They never stop to ask themselves whether someone else's information is really any better than their own."

It's nothing new.