He does, indeed, take the look on Ned's face as being one of over the top acting, and grins at him, assuming that he's just playing along. If Ned does have any deep, dark secrets, Ginsberg isn't thinking about them right now, and besides, who doesn't have secrets? Grinning at Ned, shaking his head, he says, "Y'know, you'd be a better spy if you didn't admit your allegiances as soon as I figured you out!"

When Ned calls his attention to the guy across the street, he's all smiles and amusement, already trying to decide what kind of story he can come up with for this guy, what'll amuse Ned the most. He finds that he likes making Ned laugh, and that it's nice, because Ned isn't laughing at him, like so many people are. That Ned really seems to appreciate his somewhat odd sense of humor is a relief. "That guy," he says, beginning his story with a dramatic tone, one that promises ridiculous things to come, "is..."

And then the amusement completely slides off of his face. Something very like abject fear seems to replace it, instead. "Shit, shit," he mumbles, and within several seconds, he's practically running into the nearest store, nearly physically dragging Ned with him as he does so, not explaining himself, not giving Ned the chance to ask questions, not until they're safely inside the little store and he can hide behind a shelf, looking completely mortified.