After the embarrassing Carling Cup loss to Northampton, the Reds went down 2-1 to Premier League newcomers Blackpool to sit in the top-flight relegation zone heading into the international break.
The Kop chanted the name of Liverpool legend Kenny Dalglish, who was overlooked for a return to the manager's job this summer, towards the end of the game and Hodgsoncan understand the fans' frustrations.
He 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."
Liverpool sit in 18th place, with just six points from seven matches, and Hodgson admits he has got his work cut out to rectify the situation.
"There is a lot of work to do and a lot of things to sort out," said Hodgson, whose side have now not won in five matches in all competitions.
"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."
To add to Liverpool's woes, star striker Fernando Torres was forced off with a groin injury inside the first 10 minutes.
"I don't know how severe it is but it came as a surprise to us, we had no awareness there were any problems in the groin area," Hodgson added.
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