Didn't they double the world record fee for a goalkeeper that had only been set the previous year? Don't they have the world's most expensive centre back in their squad (that they outbid City for)? Didn't they just spend over £85m on a one season wonder striker?
I'm not saying you're wrong in that they may not have the money at this particular point to go big, especially after blowing a wad on Juande Carroll, but this whole "Liverpool don't spend big money" and "Liverpool can't compete with City on wages" is clearly absolute nonsense (the season they were given the league title their wage bill was higher than ours).