THE only telling blows Liverpool landed on a truly miserable night in Manchester came 90 minutes before kick-off.

In accepting Luis Suarez’s eight-match ban the club took decisive action to draw a line under a long-running and unseemly saga.

Having assessed the independent regulatory commission’s findings, the decision was taken not to appeal against the punishment.

There were certainly enough holes in the report to earn at least a reduction in Suarez’s ban, but they would have run the risk of doing further damage to a proud club’s global reputation and the ongoing wider battle to stamp out racism.

A bitter row has finally been brought to a conclusion but this was no admission of guilt.

From Suarez’s plea that he “hasn’t done anything wrong” to Liverpool reaffirming their belief in his innocence amid talk of “ultimately unsubstantiated” allegations it’s clear a major sense of injustice lingers.

But the bottom line is for the next month Kenny Dalglish must soldier on without his creative force and the Uruguayan will be sorely missed.

Liverpool were able to make light of his absence against Newcastle but when they stepped up in class last night they were found wanting.

The final scoreline was harsh against a Manchester City side who are yet to drop a point at the Etihad Stadium this season and will surely be crowned champions in May.

But Dalglish will be left to rue the fact the Reds were the architects of their own downfall as 2012 kicked off with a crushing defeat.

This was the first part of a January trilogy with City and Roberto Mancini’s side have landed a major psychological blow ahead of next week’s Carling Cup semi-final first leg.

Ultimately, this match was about as enjoyable for Dalglish as reading the commission’s 115-page report but it could have been very different.

Liverpool wasted a glorious chance to strike first. Inside eight minutes Jordan Henderson’s intelligent pass sent Stewart Downing scampering through.

The winger had just Joe Hart to beat but couldn’t manage it as the keeper smothered his shot.

It was the kind of unconvincing effort synonymous with a player who hasn’t scored since he beat Pepe Reina at Villa Park on the final day of last season.

The Reds were still ruing that miss when City went in front two minutes later.

Dalglish’s side have found goals hard to come by this season but what the boss has been able to count on is a rock solid defence. They had conceded just five times in their previous 11 games with a settled backline seemingly growing in confidence with every passing week.

However, they fluffed their lines last night and City took full advantage.

The hosts’ opener was a comedy of errors. It came from the Reds’ own throw with Dirk Kuyt carelessly conceding possession.

James Milner and David Silva found Sergio Aguero whose dipping 25-yarder should have posed little problem for Reina. However, to the keeper’s horror the ball squirmed under his body and into the net.

For a City side whose title challenge had been dented by only one point out of six over Christmas it was the perfect boost.

The opener energised them and with the impressive Silva enjoying far too much freedom the Reds were fortunate not to fall further behind. Edin Dzeko’s shot took a big deflection off Glen Johnson and left Reina flat-footed, although to his relief it dribbled just past the post.

Liverpool weathered the storm and showed plenty of guts to force their way back into the contest.

Hart parried away Charlie Adam’s curling free-kick and Henderson threatened from long range.

When the Reds, who wore black armbands in respect of Gary Ablett, got players bursting forward in support of lone frontman Andy Carroll they looked dangerous.

One clever nod down from Carroll found Adam who was hacked down by Kolo Toure. But the opportunity was spurned with Henderson meekly blazing into the wall.

After a spell of decent pressure, Liverpool shot themselves in the foot for a second time 12 minutes before the break.

They were lucky to escape seconds earlier when Vincent Kompany’s header from Milner’s corner was expertly tipped over by Reina.

But they failed to heed the warning. Silva swung the ball in from the right and Yaya Toure got away from Glen Johnson far too easily to nod home.

City became the first team to score more than once against the Reds since Spurs in mid-September.

Early in the second half Dalglish turned to Steven Gerrard and Craig Bellamy for inspiration. In truth it was a surprise neither of them started.

The ineffective Adam and Kuyt made way and Liverpool immediately looked a much more potent threat.

With Bellamy flying down the left wing City found themselves forced on to the back foot and the Welshman went close to reducing the deficit.

The Reds were in the ascendency and it looked like the stage was set for a late fightback when Gareth Barry clattered into Daniel Agger and was dismissed for a second yellow with 18 minutes to go.

But within seconds City were out of sight. Skrtel upended Yaya Toure and Milner gave the Reds a lesson in how to take a penalty.

It could have got even worse for the Reds with substitute Adam Johnson striking the woodwork.

Wounds will be licked and Liverpool must respond in the right manner against Oldham in the FA Cup on Friday night.

The challenge facing Dalglish is to ensure when Suarez returns to action in February the Reds’ hopes of glory are still alive. They are big boots to fill but Liverpool’s season depends on it.

Man City: Hart, Richards, Kompany, Kolo Toure, Clichy, Yaya Toure, Barry, Silva (Lescott 76), Milner, Aguero (Johnson 72), Dzeko. Not used: Pantilimon, Zabaleta, Kolarov, Savic, De Jong.

Liverpool: Reina, Johnson, Agger, Skrtel, Enrique, Spearing (Rodriguez 76), Kuyt (Bellamy 57), Adam (Gerrard 56), Henderson, Downing, Carroll. Not used: Doni, Carragher, Shelvey, Kelly.

Referee: Mike Jones.

Attendance: 47,131

Goals: Aguero 10, Yaya Toure 33, Milner 75.

Yellow cards: City: Barry. Liverpool: Johnson.

Red cards: Barry (second yellow).