Holy fucking crap.
First, this issue establishes the new status quo for Loki and Thor as the people that they are after the events of "Original Sin" and "Avengers & X-Men: Axis." Thor has accepted the superiority of the new Thor (apparently in upcoming issue #4) and now calls himself Odinson. Loki has been deeply shaken by his time unable to tell a lie and realizes that he can still no longer tell one. He spontaneously confesses to killing Kid Loki, and an enraged Thor disowns him (after kicking his ass, breaking Gram, and dragging him to Asgard to expose his crimes to everyone). It's an unexpected moment, in part because you think that Loki and Thor are having a brotherly moment of contemplating what they do now that they're no longer the people that they thought that they were. Ewing plays this confusion to the hilt; I found myself reading those next few pages after Loki's confession just muttering, "no, no, no," to myself.
As you can tell from that last statement, this issue is as emotional as it comes. Ewing makes it clear that Thor isn't just furious at Loki for lying (though he is), but that he's truly enraged by the grief that he feels over realizing that Kid Loki is dead. In the brief flashback sequence, we see the affection and love that Thor had for Kid Loki, and you realize that he finally thought that he had the brother that he had always wanted Loki to be. That dream is ruined here, and Ewing makes Thor's devastation over it clear. But, equally, he makes clear Loki's horror over Thor's reaction. This series has been all about Loki trying to find redemption for his sin. Thor may not know that, but we do. As such, it's all the more difficult to watch Thor not believe that Loki really is a changed man. In other words, Ewing makes you feel terribly for everyone, since they're all hurting so deeply. Loki has been dreading this moment since his crime, and we all now see that it was as awful as he feared.
I wonder where we go from here. I worry that it's nowhere good.
**** (four of five stars)