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In this issue, there are a couple of stories unrelated to the general storyline: one follows Jack of the Tales (still of a pretty vacuous mind), and the other gives a little cultural background for the Liliputians. Both are very funny and provide great context for the story. I heard Jack of the Tales even has its own spinoff of the series (along with Cinderella), but I've yet to check it out.
By the way, don't read this rebiew if you haven't read the second book. Should go without saying, but...
The rest of the story picks up where the last one ended, with Snow White convalescing from the encounter with Goldilocks on the farm. Things have been going smoothly in Fabletown, with Bigby Wolf taking care of things while Snow is in the hospital. One day, a journalist asks for an audience with Wolf and lets him know he's been spying on the Fables underground New York community for the last three years, and that he's discovered they're immortal. He threatens to publish everything, and the Fables have to find a way to keep him from unmasking them. There's some disagreement among the Fables as to the best course of action, and Bluebeard starts getting resentful towards Wolf and Snow's authority.
This series keeps getting better with each issue. The characters are still very much "archetypes": Snow White is icy but innocent, Wolf is scraggy but loyal, Jack is resourceful but dumb... But they make sense inside their own stories in that they're not regular humans, they are Fables after all. And inside these archetypes, they are getting more interesting, specially Bigby Wolf and Prince Charming.
The humor is still there, still getting better. I actually laughed out loud reading Jack's story. The art is top notch as well, specially when it comes to the covers, which are simply beautiful.I'm starting to get why this series is so popular. Will definitely pick up the next one.