The only way to compete with megabucks in the medium term is stability and development.
United won despite having lower wage bills than Chelsea and City in the majority of the past 10 seasons. This is the first season we've had the highest wages.
Only reason we did that was cause of Fergie, and making the most out of a limited squad. We got 89 points in 12/13 and a list of players making the most apperances includes Evra, Vidic, Evans, Cleverley, Hernandez and Tony Valencia. Hardly big buys, but all had been stuck with through several seasons.
I actually think LFC will be fine next season as long as they stick with what they have. This year was always going to be a 'come down', last year pretty much everyhting went right (slips aside). Next year there'll be less pressure, and all the signings will have had time to bed in.
There are problems with the squad, but all squads have problems. For 4 months you were the form team in the country if not Europe. Wheels came off at the end, but it'd be crazy to dismiss the good.
You can't spend to compete with City/Chelsea. You have to do it another way. United are trying that method now, and I think we'll fail. Coaching and stability - that's what is needed.