In the book "Introducing Ethereum and Solidity", there is a paragraph that says:
"There is no Forgot Password functionality in the Ethereum network. That’s because your password is only for this local instance of the Mist wallet; it’s not saved on the Ethereum blockchain. In fact, your private key is all you need to re-create this account on any other computer running Mist. The password you create merely protects you from an interloper sitting down at your computer and spending your money through the Mist interface. It does not stop anyone from stealing your private keys from your computer’s file system, if it’s left unprotected."
Does this mean that Mist doesn't encrypt my wallet file/private keys?