This script works well for all fields in IE9, but does not work for password fields in IE8.

gistfile1.coffee

unless Modernizr.input.placeholder
  
  # if password input have to clone it as a text input and then remove this later (otherwise it will show up as ******)
  
  # add focus state to remove this input and show / focus the original
  $("[placeholder]").focus(->
    input = $(this)
    if input.val() is input.attr("placeholder")
      input.val ""
      input.removeClass "placeholder"
  ).blur(->
    input = $(this)
    if input.val() is "" or input.val() is input.attr("placeholder")
      if input.attr("type") is "password"
        newInput = input.clone()
        newInput.attr "type", "text"
        newInput.val input.attr("placeholder")
        newInput.addClass "placeholder clone"
        newInput.insertAfter input
        input.hide()
        newInput.focus ->
          $(this).remove()
          input.show().focus()

      else
        input.addClass "placeholder"
        input.val input.attr("placeholder")
  ).blur()
  $("[placeholder]").parents("form").submit ->
    $(this).find("[placeholder]").each ->
      input = $(this)
      if input.hasClass("clone")
        input.remove()
        return
      input.val ""  if input.val() is input.attr("placeholder")