The Whites have suffered three consecutive league defeats and been put out of the Carling Cup by Portsmouth.
"The squad has been paper-thin from the beginning of the season," added Blackwell.
"I've nowhere to go with the players. The club is paying more out in wages to players not available to me and to managers not managing here and that is the frustration.
"At the moment the expectations of the fans have to be met by somebody and yet I know we're in such a perilous state financially.
"The debts are massive, the wages have been cut but we're still in a situation where we're paying out £18m a year.
"Now I think I'm good but I don't think I'm a genius, Paul Daniels would have a good job here, I tell you."