public static void main(String[] args) {
List extends Object> mylist = new ArrayList
In his book great 'Effective Java' (Second Edition) Joshua Bloch explains what he calls the producer/consumer principle for using generics. Josh's explaination should tell you why your example does not work (compile) ...
Chapter 5 (Generics) is freely available here: http://java.sun.com/docs/books/effective/generics.pdf
More information about the book (and the author) are available: http://java.sun.com/docs/books/effective/