I think the Yanks are going to be in really good shape next year (unfortunately). They have a ton of money coming off the books ($78M from Giambi, Abreu, Pavano, Pettitte, and Mussina) and can afford to pay a bundle for free agents, which will make NOT trading their studs look smart.
Sign Sabathia and you have a rotation with Joba, Wang, Hughes and Kennedy plus possibly re-signing Mussina or Pettitte. Hughes and Kennedy are more than capable of taking a huge step forward next year.
Sign Teixeira and you have an infield with Cano, Jeter, and Arod. I think Cano couldn't possibly have a worse year than he had this year and is bound for a big bounce-back year in 2009.
Not sure what they could/should do in the outfield. They have Damon, Matsui, Melky, and Nady. Seems they need a CF but there are no real good CF free agents. They could re-sign Abreu, they could sign Manny or Dunn or to play OF/DH along with the above but their OF defense would be just as bad. Not sure - but its not THAT big of a problem. Maybe swing a trade for a CF?
Posada at catcher is a weakness that they'll have to live with, but if that's your worst problem, then that's not so bad.
They need to find some relief help, but that can be easily remedied by signing Fuentes and a few other FA relievers.
I'd be shocked if the Yanks didn't sign at least 2 big ticket free agents. Sabathia and Teixeira are perfect fits as they are young and can justify the 5-6 year deals for $20-25M per year. Scary...
"The government cannot give to anyone anything that it does not first take from someone else"