A number of reasons why it is a poor idea:
1) As pointed out, if you view source, inspect element, or anything similar, then the username/password is easily discovered.
2) Unless your transport layer is encrypted, they will be easily intercepted.
3) If the browser caches your html page, then that file with a username/password is now stored on that person's computer.
4) If that user saves the page to give to someone else, then their username/password goes with that page.
5) A POST method accidentally gets changed to a GET, now the password and username is stored in the server access logs....
Etc, etc.
There is no real reason to do it in my opinion, especially when you can use session cookies on the server, or some other method that doesn't expose private information to the client.
Edit: Come to think of it, I have done this once before. I put a password in a hidden field, however before doing so I encrypted it with a secret key known only to the server before printing it out, and then when I got the password posted back to the server, I decrypted it. Therefore the plaintext password is never with the client.
Edit 2: Should probably point out that the method described in the previous edit was not used for directly authenticating someone, as per hobbs point.