Add 'placeholder' attribute support to inputs and textareas. Requires jQuery and Modernizr.

placeholders.js

$(function(){
    if (!Modernizr.input.placeholder) {
        $('input[placeholder], textarea[placeholder]').each(function(index, elem) {
            elem = $(elem);
            placeholder = elem.attr('placeholder');
            elem_id = elem.attr('id');
            elem_name = elem.attr('name');
            
            clone = elem.clone();
            clone.hide();

            if (elem_id) {
                clone.attr({'id': elem_id+'-fake'});
            }
            if (elem_name) {
                clone.attr({'name': elem_name+'-fake'});
            }
            clone.addClass('fake');
            clone.data({'original': $(elem)});
            clone.val(placeholder);
            
            clone.focus(function(e) {
                e.preventDefault();
                $(this).hide();
                $(this).data('original').show().focus();
            });
            elem.blur(function() {
                if ($(this).val() == '') {
                    $(this).hide();
                    $(this).next().show();
                }
            });
            
            elem.after(clone);
            elem.blur();
        });
    }
});

to be safe I'd use: $(e.currentTarget) versus $(this) and I'd chain it if not caching the jquery object.. [you cached elem and clone]

$(e.currentTarget)
.hide()
.data('original')
.show().focus();