Dúvida no Ex. 7 da Aula 2 - Configuração e inicialização do JPA

Olá. Meu código está assim:

package br.com.caelum.financas.teste;

import javax.persistence.EntityManager;
import javax.persistence.EntityManagerFactory;
import javax.persistence.Persistence;

import br.com.caelum.financas.modelo.Conta;

public class TesteJPA {

    public static void main(String[] args){

        Conta conta = new Conta();
        conta.setTitular("Fulano de Tal");
        conta.setAgencia("0987");
        conta.setBanco("Banco do Brasil");
        conta.setNumero("12345");

        EntityManagerFactory entityManagerFactory = Persistence.createEntityManagerFactory("financas");
        EntityManager entityManager = entityManagerFactory.createEntityManager();

        entityManager.getTransaction().begin();
        entityManager.persist(conta);
        entityManager.getTransaction().commit();
        entityManager.close();

    }

}

<persistence xmlns="http://java.sun.com/xml/ns/persistence"
    xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
    xsi:schemaLocation="http://java.sun.com/xml/ns/persistence 
http://java.sun.com/xml/ns/persistence/persistence_2_0.xsd"
    version="2.0">

    <!-- unidade de persistencia com o nome financas -->
    <persistence-unit name="financas">

        <!-- Implementação do JPA, no nosso caso Hibernate -->
        <provider>org.hibernate.ejb.HibernatePersistence</provider>

        <!-- Aqui são listadas todas as entidades -->
        <class>br.com.caelum.financas.modelo.Conta</class>

        <properties>
            <!-- Propriedades JDBC -->
            <property name="javax.persistence.jdbc.driver" value="com.mysql.jdbc.Driver"/>
            <property name="javax.persistence.jdbc.url" value="jdbc:mysql://localhost/financas"/>
            <property name="javax.persistence.jdbc.user" value="root"/>
            <property name="javax.persistence.jdbc.password" value=""/>

            <!-- Configurações específicas do Hibernate -->
            <property name="hibernate.dialect" value="org.hibernate.dialect.MySQL5InnoDBDialect"/>
            <property name="hibernate.hbm2ddl.auto" value="update"/>
            <property name="hibernate.show_sql" value="true"/>
            <property name="hibernate.format_sql" value="true"/>
        </properties>
    </persistence-unit>
</persistence>

package br.com.caelum.financas.modelo;

import javax.persistence.Entity;
import javax.persistence.GeneratedValue;
import javax.persistence.GenerationType;
import javax.persistence.Id;

@Entity
public class Conta {

    @Id @GeneratedValue(strategy=GenerationType.IDENTITY)
    private String id;
    private String titular;
    private String numero;
    private String banco;

    public String getId() {
        return id;
    }
    public void setId(String id) {
        this.id = id;
    }
    public String getTitular() {
        return titular;
    }
    public void setTitular(String titular) {
        this.titular = titular;
    }
    public String getNumero() {
        return numero;
    }
    public void setNumero(String numero) {
        this.numero = numero;
    }
    public String getBanco() {
        return banco;
    }
    public void setBanco(String banco) {
        this.banco = banco;
    }
    public String getAgencia() {
        return agencia;
    }
    public void setAgencia(String agencia) {
        this.agencia = agencia;
    }
    private String agencia;

}

Não sei porque razão, recebo este erro:

set 24, 2015 12:33:20 AM org.hibernate.Version logVersion
INFO: HHH000412: Hibernate Core {4.3.10.Final}
set 24, 2015 12:33:20 AM org.hibernate.cfg.Environment <clinit>
INFO: HHH000206: hibernate.properties not found
set 24, 2015 12:33:20 AM org.hibernate.cfg.Environment buildBytecodeProvider
INFO: HHH000021: Bytecode provider name : javassist
set 24, 2015 12:33:21 AM org.hibernate.annotations.common.reflection.java.JavaReflectionManager <clinit>
INFO: HCANN000001: Hibernate Commons Annotations {4.0.5.Final}
set 24, 2015 12:33:21 AM org.hibernate.engine.jdbc.connections.internal.DriverManagerConnectionProviderImpl configure
WARN: HHH000402: Using Hibernate built-in connection pool (not for production use!)
set 24, 2015 12:33:21 AM org.hibernate.engine.jdbc.connections.internal.DriverManagerConnectionProviderImpl buildCreator
INFO: HHH000401: using driver [com.mysql.jdbc.Driver] at URL [jdbc:mysql://localhost/financas]
set 24, 2015 12:33:21 AM org.hibernate.engine.jdbc.connections.internal.DriverManagerConnectionProviderImpl buildCreator
INFO: HHH000046: Connection properties: {user=root}
set 24, 2015 12:33:21 AM org.hibernate.engine.jdbc.connections.internal.DriverManagerConnectionProviderImpl buildCreator
INFO: HHH000006: Autocommit mode: false
set 24, 2015 12:33:21 AM org.hibernate.engine.jdbc.connections.internal.DriverManagerConnectionProviderImpl configure
INFO: HHH000115: Hibernate connection pool size: 20 (min=1)
set 24, 2015 12:33:21 AM org.hibernate.dialect.Dialect <init>
INFO: HHH000400: Using dialect: org.hibernate.dialect.MySQL5InnoDBDialect
set 24, 2015 12:33:21 AM org.hibernate.engine.jdbc.internal.LobCreatorBuilder useContextualLobCreation
INFO: HHH000423: Disabling contextual LOB creation as JDBC driver reported JDBC version [3] less than 4
set 24, 2015 12:33:21 AM org.hibernate.hql.internal.ast.ASTQueryTranslatorFactory <init>
INFO: HHH000397: Using ASTQueryTranslatorFactory
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.SchemaUpdate execute
INFO: HHH000228: Running hbm2ddl schema update
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.SchemaUpdate execute
INFO: HHH000102: Fetching database metadata
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.SchemaUpdate execute
INFO: HHH000396: Updating schema
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.DatabaseMetadata getTableMetadata
INFO: HHH000262: Table not found: Conta
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.DatabaseMetadata getTableMetadata
INFO: HHH000262: Table not found: Conta
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.DatabaseMetadata getTableMetadata
INFO: HHH000262: Table not found: Conta
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.SchemaUpdate execute
ERROR: HHH000388: Unsuccessful: create table Conta (id varchar(255) not null auto_increment, agencia varchar(255), banco varchar(255), numero varchar(255), titular varchar(255), primary key (id)) ENGINE=InnoDB
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.SchemaUpdate execute
ERROR: Incorrect column specifier for column 'id'
set 24, 2015 12:33:22 AM org.hibernate.tool.hbm2ddl.SchemaUpdate execute
INFO: HHH000232: Schema update complete
Hibernate: 
    insert 
    into
        Conta
        (agencia, banco, numero, titular) 
    values
        (?, ?, ?, ?)
set 24, 2015 12:33:22 AM org.hibernate.engine.jdbc.spi.SqlExceptionHelper logExceptions
WARN: SQL Error: 1146, SQLState: 42S02
set 24, 2015 12:33:22 AM org.hibernate.engine.jdbc.spi.SqlExceptionHelper logExceptions
ERROR: Table 'financas.conta' doesn't exist
set 24, 2015 12:33:22 AM org.hibernate.engine.jdbc.spi.SqlExceptionHelper$StandardWarningHandler logWarning
WARN: SQL Warning Code: 1146, SQLState: 42S02
set 24, 2015 12:33:22 AM org.hibernate.engine.jdbc.spi.SqlExceptionHelper$StandardWarningHandler logWarning
WARN: Table 'financas.conta' doesn't exist
Exception in thread "main" javax.persistence.PersistenceException: org.hibernate.exception.SQLGrammarException: could not execute statement
    at org.hibernate.jpa.spi.AbstractEntityManagerImpl.convert(AbstractEntityManagerImpl.java:1763)
    at org.hibernate.jpa.spi.AbstractEntityManagerImpl.convert(AbstractEntityManagerImpl.java:1677)
    at org.hibernate.jpa.spi.AbstractEntityManagerImpl.convert(AbstractEntityManagerImpl.java:1683)
    at org.hibernate.jpa.spi.AbstractEntityManagerImpl.persist(AbstractEntityManagerImpl.java:1187)
    at br.com.caelum.financas.teste.TesteJPA.main(TesteJPA.java:23)
Caused by: org.hibernate.exception.SQLGrammarException: could not execute statement
    at org.hibernate.exception.internal.SQLExceptionTypeDelegate.convert(SQLExceptionTypeDelegate.java:80)
    at org.hibernate.exception.internal.StandardSQLExceptionConverter.convert(StandardSQLExceptionConverter.java:49)
    at org.hibernate.engine.jdbc.spi.SqlExceptionHelper.convert(SqlExceptionHelper.java:126)
    at org.hibernate.engine.jdbc.spi.SqlExceptionHelper.convert(SqlExceptionHelper.java:112)
    at org.hibernate.engine.jdbc.internal.ResultSetReturnImpl.executeUpdate(ResultSetReturnImpl.java:211)
    at org.hibernate.id.IdentityGenerator$GetGeneratedKeysDelegate.executeAndExtract(IdentityGenerator.java:96)
    at org.hibernate.id.insert.AbstractReturningDelegate.performInsert(AbstractReturningDelegate.java:58)
    at org.hibernate.persister.entity.AbstractEntityPersister.insert(AbstractEntityPersister.java:3032)
    at org.hibernate.persister.entity.AbstractEntityPersister.insert(AbstractEntityPersister.java:3558)
    at org.hibernate.action.internal.EntityIdentityInsertAction.execute(EntityIdentityInsertAction.java:98)
    at org.hibernate.engine.spi.ActionQueue.execute(ActionQueue.java:492)
    at org.hibernate.engine.spi.ActionQueue.addResolvedEntityInsertAction(ActionQueue.java:197)
    at org.hibernate.engine.spi.ActionQueue.addInsertAction(ActionQueue.java:181)
    at org.hibernate.engine.spi.ActionQueue.addAction(ActionQueue.java:216)
    at org.hibernate.event.internal.AbstractSaveEventListener.addInsertAction(AbstractSaveEventListener.java:334)
    at org.hibernate.event.internal.AbstractSaveEventListener.performSaveOrReplicate(AbstractSaveEventListener.java:289)
    at org.hibernate.event.internal.AbstractSaveEventListener.performSave(AbstractSaveEventListener.java:195)
    at org.hibernate.event.internal.AbstractSaveEventListener.saveWithGeneratedId(AbstractSaveEventListener.java:126)
    at org.hibernate.jpa.event.internal.core.JpaPersistEventListener.saveWithGeneratedId(JpaPersistEventListener.java:84)
    at org.hibernate.event.internal.DefaultPersistEventListener.entityIsTransient(DefaultPersistEventListener.java:206)
    at org.hibernate.event.internal.DefaultPersistEventListener.onPersist(DefaultPersistEventListener.java:149)
    at org.hibernate.event.internal.DefaultPersistEventListener.onPersist(DefaultPersistEventListener.java:75)
    at org.hibernate.internal.SessionImpl.firePersist(SessionImpl.java:811)
    at org.hibernate.internal.SessionImpl.persist(SessionImpl.java:784)
    at org.hibernate.internal.SessionImpl.persist(SessionImpl.java:789)
    at org.hibernate.jpa.spi.AbstractEntityManagerImpl.persist(AbstractEntityManagerImpl.java:1181)
    ... 1 more
Caused by: com.mysql.jdbc.exceptions.jdbc4.MySQLSyntaxErrorException: Table 'financas.conta' doesn't exist
    at sun.reflect.NativeConstructorAccessorImpl.newInstance0(Native Method)
    at sun.reflect.NativeConstructorAccessorImpl.newInstance(Unknown Source)
    at sun.reflect.DelegatingConstructorAccessorImpl.newInstance(Unknown Source)
    at java.lang.reflect.Constructor.newInstance(Unknown Source)
    at com.mysql.jdbc.Util.handleNewInstance(Util.java:409)
    at com.mysql.jdbc.Util.getInstance(Util.java:384)
    at com.mysql.jdbc.SQLError.createSQLException(SQLError.java:1054)
    at com.mysql.jdbc.MysqlIO.checkErrorPacket(MysqlIO.java:3562)
    at com.mysql.jdbc.MysqlIO.checkErrorPacket(MysqlIO.java:3494)
    at com.mysql.jdbc.MysqlIO.sendCommand(MysqlIO.java:1960)
    at com.mysql.jdbc.MysqlIO.sqlQueryDirect(MysqlIO.java:2114)
    at com.mysql.jdbc.ConnectionImpl.execSQL(ConnectionImpl.java:2696)
    at com.mysql.jdbc.PreparedStatement.executeInternal(PreparedStatement.java:2105)
    at com.mysql.jdbc.PreparedStatement.executeUpdate(PreparedStatement.java:2398)
    at com.mysql.jdbc.PreparedStatement.executeUpdate(PreparedStatement.java:2316)
    at com.mysql.jdbc.PreparedStatement.executeUpdate(PreparedStatement.java:2301)
    at org.hibernate.engine.jdbc.internal.ResultSetReturnImpl.executeUpdate(ResultSetReturnImpl.java:208)
    ... 22 more

O código <property name="hibernate.hbm2ddl.auto" value="update"/> devia criar a tabela pra mim. No entanto, ele apenas informa que a tabela não existe. Alguém poderia me ajudar?