What was Cali going to do? Cower inside while he called Paulie Walnuts or someone to handle it? .
Yes. Precisely.
No, he was going to handle it.
So he thought.
Gangsters are afraid of appearing weak. You and I can just say "who cares what people think" but in their business if the other guys think they're weak they will be taken advantage of. Besides, they have criminal minds, they are not normal. They don't think like us.
