Oh wait, Clinton never said that. Obama's Swiftboat lied to you!

MediaMatters debunked the Obama Camps wild claims about the words "fairy tale"
http://mediamatters.org/items/200803040001

Matthews mischaracterized Bill Clinton "fairy tale" quote
Summary: Chris Matthews asserted that former President Bill Clinton "made a series of remarks about Barack Obama that turned off many Democrats and may have helped galvanize black voters for Obama." Matthews then aired an abbreviated clip of Clinton's January 7 comments, "This whole thing is the biggest fairy tale I've ever seen," leaving out his preceding comments in which Clinton made clear that he was talking about Obama's statements regarding the Iraq war and not Obama's campaign.