Liverpool 1 Blackpool 2: Blackpool's victory adds to Hodgson's discomfort

Charlie Adam's penalty and Luke Varney's perfectly-timed run and finish did the damage for the Barclays Premier League newcomers in the first half.

Although Sotirios Kyrgiakos's header pulled one back early in the second period, Liverpool will spend the forthcoming international break rooted in the bottom three.

They have won just one of their seven league matches – a 1-0 victory over West Brom at home – and are 18th with just six points.

"I'd rather not think about it," was Hodgson's response to being asked about the game.

"In the first half we were correctly punished for a lacklustre display.

"We had the ball as much as them but did not do anything with it anywhere near enough to satisfy my, the club's or the players' demands.

"We conceded two goals on counter-attacks but in the second half we came out and tried to turn matters around but could only get one goal.

"Their great result is our nightmare result. It is a very bad day and there is nothing I can say.

"At the moment things look bleak and really bad and it is difficult for me to put a bright face upon it.

"There are 31 games left but when you are in the relegation zone you are in a relegation battle.

"But I really don't think my concerns are with relegation, my concerns are that we are not playing to our full potential.

"I am not going to think too much about relegation with 31 games to go."

If Hodgson was in any doubt that his honeymoon period is over just three months after taking over it came shortly before the end when the Kop began chanting the name of club legend Kenny Dalglish, who was overlooked somewhat dismissively for the manager's job when Rafael Benitez left in the summer.

The 62-year-old took the slight on the chin.

"What's fair and unfair? There is no fairness. The fans are entitled to voice their frustrations, they are a frustrated group at the moment," he added.

"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."

Striker Fernando Torres was forced off with injury after just 10 minutes but Hodgson did not know the extent of the problem.

"It is a groin strain, I don't know how severe," he said.

"It came as a surprise to us, we had no awareness there were any problems in the groin area.

"I don't know if it was something which happened during the course of the game."

Blackpool manager Ian Holloway admitted the departure of Torres so early gave his side an unexpected boost.

"To see the best striker in the world limp off after a few minutes, I can't tell you what that did for us," he said. "His mere presence is awesome so to see him come off played into our hands and helped us."

Holloway said it was one of the best days of his football career.

"It is one of the dreams I've had for years," added the Seasiders boss, whose side were applauded off by the home fans.

"When the fans were singing You'll Never Walk Alone – it's my dad's favourite song but he's no longer with me – I was singing myself and it was a bit emotional.

"This is not far off the home of football – these supporters have seen some of the best football over the years and in my era as a player there was no better team in the world.

"The boys made me so proud and for that set of supporters to clap us off, that is all I wanted – that was what my dream was (on Saturday night).

"This is a fantastic moment for Blackpool."

Liverpool right-back Glen Johnson, who has had a dreadful start to the season, brought down Varney, allowing Adam to fire home the penalty despite Pepe Reina getting a hand on it.

Seconds before the interval the Seasiders stunned their hosts when Gary Taylor-Fletcher flicked a ball into the penalty area and Varney ran on to fire past Reina.

Kyrgiakos powered home Stephen Gerrard's quickly-taken free-kick on 53 minutes but as rapidly as Liverpool had gained their attacking momentum it seemed to desert them.

Hodgson has some serious thinking to do while the majority of his squad are away with their national teams.