To loan Falcao for a year will end up costing just as much if not more (in terms of up front fee and wages) than Balotelli on a permanent deal.
Falcao is a big name, and a world class player -but at 28 and coming back from a serious injury, it's quite risky along with the big price.
Balotelli is younger, more scope for development, world class potential, faster and more versatile. For £16m, it's a very smart signing and one that I think will become successful.
I do find it funny how Man United fans are getting all cocky and happy over signing these big names. Regardless of the fact none of them solve the underlying issue in the team.
As LFC have done over the past 2-3 years, we'll buy top talents and make them into big names.