Is it time for Liverpool to panic?
Yes and no
Last year Liverpool only lost two league games and finished second. This year the league is much more open, and I think the winner will finish with less than last year's total of 90.
I don't think though that the game on Monday was a reason to sound the alarms. Liverpool played their style, and came away with plenty of opportunities. Friedel had a great game and looked unbeatable. If Lucas wasn't in the wrong place at the wrong time and Gerrard didn't make a dumb frustration tackle then the game would have been much different.
What does Liverpool need to do to turn things around? First, they need their leaders to lead. Rafa and Gerrard need to make things positive and inspire the team. All of the players that go on the pitch need to believe that they are going to win every game. I'm sure that this isn't the common sentiment in the clubhouse right now, and those two are the ones who have to make this change.
Second, they need their role players to step up. Riera, Babel, Mascherano, Lucas need to play with the urgency that means winning every game in a thirty eight game season. The league is about scrapping out games against bad teams and stepping up for big matches. Mistakes will happen, but that's when you have to elevate your game for your team. The big boys on the team will get theirs; these guys will be the difference makers this season.
Third, they need to get over Xavi. He's gone. It's over. Win games without him. The talent is there.
And if all else fails they still have the Champions League.