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Fairy Tales are Real is a scam that happened in "Tinker Ed." It started when Sarah accosted the Eds in the lane because their previous scam had backfired, turning Jimmy into a depressed cynic who no longer believed in fairy tales. After Sarah threatened them, Eddy gave in and soon the Eds were dressed up as different mythological creatures. Eddy was a fairy, Edd was a mermaid, and Ed was a gnome. However, Jimmy rejected all of them before "tripping" over what was apparently a golden horseshoe that would supposedly clothe the foot of a unicorn. While Jimmy called it trash, Eddy was completely sucked in by the golden horseshoe, and gave Jimmy the quarter he had scammed from him earlier in exchange for the horseshoe. Upon closer examination, though, Edd diagnosed the horseshoe as simply a dental retainer painted gold, and Sarah popped out from behind a rock and took a picture of the dressed-up Eds. She and the now satisfied Jimmy ran off, along the way giving the camera to Kevin, who said he was convinced that fairy tales exist before running off to show the photo to the other kids.

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