Blackpool managed to beat Liverpool 2-1 and the Reds now face a relegation fight.
“Things are looking really, really bleak. It has been said that if you are in the bottom three, you are in a relegation fight, and I would have to go along with that,” admitted Hodgson.
“But I’m not thinking too much about relegation with 31 games left. My concerns are that we are not playing to our full potential, or are only doing it in periods. In the first half we were punished for a lacklustre display.
“We had the ball as much as they did but didn’t do anywhere near enough with it to satisfy my demands, the club’s demands or the players’ demands on themselves.”
Liverpool fans chanted the name of Liverpool legend Kenny Dalglish after the game against Blackpool at the weekend.
Dalglish wanted to return to the manager’s job this summer, but the Liverpool board decided to move for Hodgson.
Hodgson said: “The fans are entitled to voice their frustrations, they are a frustrated group at the moment.
“I am the one responsible because I am the team manager. When the team does badly then the criticism is going to fall my way and I have to accept it.”
“There is a lot of work to do and a lot of things to sort out,” said Hodgson.
“The only thing I can take heart from is that the spirit from the team is still there because I couldn’t have asked for any more in the second half.
“We were really anxious to get back on the right track with this result but we were unable to do it and no words will make the situation any better.
“It is pointless to try to be positive because we lost the game.
“Their great result is our nightmare result. It is a very bad day.
“At the moment things look bleak and really bad and it is difficult for me to put a bright face upon it.”
