Hodgson is definitely the wrong target - I feel sorry for him cleaning up Rafa's mess. In some ways I don't know how they managed to consistently finish 4th and do well in the Champions' League for so long: Houllier and Benitez were both
awful in the transfer market.
The first signs of the inevitable came last season when they finished 7th. Hodgson was quite correct to criticse Benitez's transfers back in November, and yet somehow Benitez then got an apology out of him.
This (
http://www.footbo.com/Teams/Liverpool/Transfers) covers most of the Benitez years, but other than Torres and Alonso its hard to pick out resounding hits. Benitez spent £70m on Keane, Babel, Aquilani and Johnson. Only Johnson is a regular, and even then he's hardly world class. There are plenty of undiscloseds - how much did the likes of Riera and Lucas cost?
Without digging into Houllier's record, this gives you an idea of a typical summer's activity for Gerard:
http://www.liverpoolfc.tv/news/latest-n ... s-for-reds . (Unhappily for Villa, Gerard is about to get up to his old tricks for them:
http://www.dailymail.co.uk/sport/footba ... ofana.html).
Their squad doesn't anywhere near match their ambitions, and Hodgson clearly doesn't have the budget to sort it out in the short term. The signings he has made are trying to plug the holes with what he can get. Woy did a great job at Fulham, and given time he might be able to turn things round, but it doesn't matter who is manager for the time being - no way is the squad that Benitez left or that they have now good enough for top 4 or even top 6.
EDIT: This sums it up:
http://www.guardian.co.uk/football/blog ... oy-hodgson