Is my form password being passed in clear text?

Question

This is what my browser sent, when logging into some site:

POST http://www.some.site/login.php HTTP/1.0
User-Agent: Opera/8.26 (X2000; Linux i686; Z; en)
Host: www.some.site
Accept: text/html, application/xml;q=0.9, application/xhtml+xml, image/png, image/jpeg, image/gif, image/x-xbitmap, */*;q=0.1
Accept-Language: en-US,en;q=0.9
Accept-Charset: iso-8859-1, utf-8, utf-16, *;q=0.1
Accept-Encoding: deflate, gzip, x-gzip, identity, *;q=0
Referer: http://www.some.site/
Proxy-Connection: close
Content-Length: 123
Content-Type: application/x-www-form-urlencoded

lots_of_stuff=here&e2ad811=my_login_name&e327696=my_password&lots_of_stuff=here

Can I state that anyone can sniff my login name and password for that site? Maybe just on my LAN?
If so (even only on LAN ) then I'm shocked. I thought using

<input type="password">

did something more than make all characters look like ' * '

p.s. If it matters I played with netcat (on linux) and made connection
browser <=> netcat (loged here) <=> proxy <=> remote_site

Answer 1

Every data sent trought a http connection can be seen by someone in your route to the server (man in the middle attack).

type="password" only hides the character on-screen, and even other programs on your computer can read the data.

The only way to protect the data is to send it trought SSL (HTTPS instead of HTTP)