You're using 'placeholderText' as a selector, which won't select anything. Use $('input').focus(... and $('input').blur(... instead.
UPDATE
If you want to store the existing value, and then replace it, then store it as .data() in the <input> element itself:
$('input').focus(function() {
$this = $(this);
$this.data('oldval',$this.val());
$this.val('');
});
$('input').blur(function() {
$this = $(this);
$this.val($this.data('oldval'));
});
http://jsfiddle.net/mblase75/AL2vS/12/
Or possibly:
$('input').blur(function() {
$this = $(this);
if ($this.val().length==0) { // only if the field is blank
$this.val($this.data('oldval'));
};
});