java window

What's the matter with this code?
I want to get something like on the attached picture :S

Code:

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import java.awt.Dimension;
import java.awt.GridLayout;
import javax.swing.JFrame;
import javax.swing.JPanel;
import javax.swing.JTextArea;
public class Bounce {
        public static void main(String[] args) {
                JFrame frame = new JFrame();
                frame.setSize(new Dimension(600, 350));
                frame.setResizable(false);
                frame.setTitle(new String("test"));
                frame.setDefaultCloseOperation(JFrame.EXIT_ON_CLOSE);
                JPanel panel = new JPanel();
                panel.setPreferredSize(new Dimension(600, 300));
                panel.setLayout(new GridLayout(0,2,50,50));
                JTextArea text1 = new JTextArea();
                JTextArea text2 = new JTextArea();
                panel.add(text1);
                panel.add(text2);
                frame.getContentPane().add(panel);
                frame.setVisible(true);
        }
}

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You tell us. What does the code do instead?

And what's the problem? It works fine for me.

It stretches text fields on whole window when I want it to make an alignment of 50 pixels :S