The crazy state of baseball economics

What is wrong with baseball this winter? Astronomical deals that are just unbelievable. Middle relievers getting multi year contracts for $5 million a year. Ted Lilly earning 4 years for $40 million. I'm so glad the Yankees did not sign him for that amount.

But then, this just in today:
Gil Meche to the Royals @ $55 million for 5 years. $11 million a year? For nothing more than a journeyman? The Royals should have used this money to win the bid on that Japanese pitcher.

At these ridiculous rates, now more than ever, a strong farm system is a must.

Edit: At least a potentially good signing...Octavio Dotel for 1 year @ $5 million. Could be worth it.