Jason McAteer believes Liverpool would have been better off investing heavily in a top class striker this summer, and the Reds were interested in Falcao at one stage. The Colombian international eventually joined Manchester United on deadline day on loan.
Liverpool transfer update
Liverpool boss Brendan Rodgers spent £16m to sign Mario Balotelli from AC Milan, as the Reds invested heavily across several areas, including defence and attacking midfield.
But McAteer thinks Liverpool should have instead used the majority of the Champions League revenue received for qualifying for the competition and the money from the Suarez sale on Falcao.
Falcao to Liverpool?
"I would have done everything possible to sign Falcao," McAteer told the Daily Star. "Mario is a good player and Liverpool played the deal well. They waited until late on to get it done and played hard ball with the Italians.
"£16m is a good price. But I'd have taken a gamble on Falcao and backed him to get Liverpool back into the Champions League. There's no point loaning him.
"It's like renting a house, you're chucking money down a hole. I'd have gone out and broken the bank to buy him. I'd have gambled on him to get us back in the Champions League and used the £25m you get from that on funding the deal."
And while McAteer thinks Balotelli is a top player he doesn't think he quite fits into the system Liverpool like to play under Rodgers.
But would he have suited Liverpool?
"He is a strong striker who likes to take two or three touches on the ball - unlike Suarez or Sturridge," McAteer continued.
"He doesn't fit straight into the Liverpool style and will need time to adapt to the way Brendan Rodgers wants to play."