The Allied storm was just gaining serious momentum after the recent German defeat at Stalingrad, the Africa Korps getting pushed into Tunisia in North Africa, the Battle of the Atlantic turning against the u-boats and the beginning of the daily bombing raids against German industrial areas.
I wonder what must have been running through the minds of those in attendance? Did any of them realize they were screwed or did they still think victory was possible?
There's a famous quote from Goebbels himself concerning that meeting. He said something along the lines that had he told the audience to jump out of the windows and kill themselves they probably would have done it.