His transfer dealings are even worse. Its just bad management. He gambles on talented players that are not performing, his gamble paid of on Coutinho and sturridge but did not on so many others. He thinks he can make them reach their potential again but sturridge apart there is no one who has significantly improved.
Selling Agger was a very stupid decision, he was probably one of the better defenders you had, he was injured a lot yes but he should have been kept. Instead you keep Toure!
Coutinho is a good player too, but has no place in the diamond as he and sterling play the same position as their best. If he plays 4-3-3 then balotelli is out. He tried the 3-5-2 in this match and your players are not used to it. I also think it limited sterling alot. The three in the middle of henderson/gerrard/lallana is Not Providing a defensive cover at all. Last year with suarez no one dared press you as the pace and the guile of suarez would tear them apart, now without him and sturridge it just does not happen. Balotelli has a very different style and he does not do enough without the ball even in attacking sense.
Your goalkeeper is a good shot stopper but is barthez in every other sense. I think without suarez teams are able to double team sterling and stop supply to sturridge, Both are very good players but they lack that 2 steps that take them to suarez level and make them unstoppable. It was almost like stop sterling, stop Liverpool yesterday from west ham. They played on that and the trust they had on your defense to shoot themselves in the foot. Now is the real test of rodgers, he was very lucky to inherit suarez and some good players, now how he takes this team ahead is the real step that seperates a good manager from a great one.