That is true. The Yankees are going to be in stop gap mode this year. The good news is that they have the ability to swing deals at the trade deadline that other teams can't.
Not really. The business guys like Levine and Trost, not Cashman, have Hal Steinbrenner's ear, which is how the whole "OH SHIT WE HAVE TO GET UNDER $189 MILLION" scramble began in the first place, despite those same business guys being the dopes who worked out ludicrous deals like the A-Rod extension. So their financial flexibility isn't there, and the farm system is at least a year or two away from providing quality talent. The Yankees have some severe issues right now; it's a really bad situation for any GM to be dealing with (has been since George Steinbrenner got ill, really), and that Cashman's even still there at this point is rather surprising.
The best part: Vernon Wells was the oldest position player on the Angels. He'll be the
sixth-oldest position player on the Yankees.