Alex Belth at Bronx Banter pens a thoughtful piece on what's going on with the Yankees, partly in response to Buster Olney's piece, and partly in response to the Nick Johnson trade. He's much more upbeat about things than I am. He quotes the 1988 Baseball Abstract and comments:

Does any of this feel familiar? Yes, the Yankees have essentially given up on developing players for the next few years. The players they have developed are now veterans. But the old Columbus shuttle isn't as frequent as it used to be. If this were the old days, Jeff Weaver's head would be spinning more than Jim Beattie's did. Yes, George is acquiring proven stars to lead the way, a ploy that ultimately failed during the eighties. But from what I can tell, the Yankees are doing a relatively good job of identifying their needs. They needed a right fielder, and are going after the best--OK, maybe the second-best--one available. They needed to upgrade their bullpen, and went out and signed Gordon and Quantrill (who are a far cry from the likes of Osuna and Acevado). They need starting pitching, they traded for Javier Vasquez.

I don't see a Steve Kemp or a Jack Clark yet, although if they sign Kenny Lofton he would fit that category just fine.

Where I would disagree with Alex's analysis is that the Yankees don't have to crash and burn. As an example of this, I'll point to Atlanta. Every year, Atlanta seems to be able to point to their weaknesses and address them. And every year (expect 1994) they've won the division. They don't let the team get old and stale. They improve with a combination of free agent signings (Pendelton, Sheffield) and bring up youngsters (Justice, Millwood, Lopez, Furcal, Giles). And they don't seem to destroy their farm system doing it either. If everything works out, the Yankees win the division again this year. But Jeter, Williams, Giambi and Posada become bigger question marks every year health wise. It doesn't take much bad luck to see those four hurt , and then where is the offense?

I agree the moves the Yankees are making aren't as bad as the moves they made in the 80's, but I think the treadmill is moving, and it possible that it will reach high speed very quickly.