Are backups encrypted?

Hey all,
Does Time Machine store backup data encrypted?
Also, when backing up to a Time Capsule, is the data encrypted as it's being transmitted wirelessly?
Thanks for the help.
Mickey

I already purchased a Time Capsule, working under the assumption it would safely backup data. Plus I have about 4 LaCie drives failing on me right now
I don't see how a Time Capsule would be very valuable if it didn't securely transfer data over a network. Then again I haven't seen any documentation verifying that it does. Thanks for your posts.
Mickey

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