Merlino's always been this way, so it's hard to call him dumb or hate him for it. He's always flaunted being a mobster, and in all honesty, he sort of paints himself as like a caricature of a gangster. It's almost like he's saying "We were just kids from the neighborhood, yeah we shot it out with one another a few times, but can you believe this shit? Can you believe all this attention we're getting? This shit is hysterical..." Previte also says that was always the vibe he got from Joey Merlino, that he just lived with the times. He seems like a guy who knows life isn't promised, so fuck it, might as well live it how you want until they put you away for life, or you get two in the back of the head.
He knows what he is, he knows odds are, he'll suffer the same fate as his father and die in prison. But until then, he's going to scam, he's going to party, he's going to meet with whomever he wants, and he'll do his damnest to get away with it until the other shoe finally drops.
