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Why do some forums not let you set passwords?

Certain forums give you your password, and it's a random letter comination that no one can remember without effort. Certain other forums create a new password if you forget yours, so there's no use trying to memorize. Why is this? Are they afraid that you will give someone else your password for something else and it will happen to be the one you use for everything? Is that really such a threat to those unnamed forums' security?
 
Some sites don't store your password. They store an encrypted version of your password that is unrecoverable. When you log in, it takes the password you type, and encrypts it the same was as the stored password was encrypted. If the two match, you have the right password.
 
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