^
Having just watched the ep in question a week ago, I remember the speech well. I also remember Red's hesitation in answering Liz the first time she asked if he was her father, before saying 'No'. I remember the glowing way he talked about having seen her to Sam, not as if she was someone else's daughter, but his own. But the thing that convinces me the most that I'm right was the way that Spader played the 'death' scene. The devastation he conveyed was that of a man who had just lost HIS OWN DAUGHTER, not someone that he had merely been watching over. Call me crazy, but I have still yet to see anything to convince me otherwise.
And while I'm being crazy, let me throw out my theory that Katerina is still alive and she will be the one to tell Liz that Red is indeed her biological father, something that Red himself will never do.
Just a theory, but we'll see.