When the situation sucks, it is up to the leader to focus the negative emotions in a positive direction. Being little Suzie Sunshine and denying the suck is bullshit and will turn your people against you immediately. Whether they say it out loud or not, what they're saying in their heads is, "Shut the fuck up. This sucks and you can't blow enough sunshine up our asses to make it suck any less." Going negative is also a bad call. While it will gain short-term agreement from the people on your team it will lead them into a non-productive mindset focused on the suck rather than on the tasks that must be accomplished.
So what should a leader do?
Acknowledge the suck and drive on.
Yeah, this situation sucks, and there's not much that we can do to minimize or change the suck, but we have work to do, so how can we join together, like the warriors that we are, and beat this bad bitch into the ground. THAT'S what a leader does.
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