I think it's probably a little bit of both. Like K said, he probably has a little bit of extra money laying around that you don't know about, but most likely not a huge amount. Most of it is just his guilt coming out and by being overly reasonable it makes him feel better about the whole situation.
I can only hope that my agreement goes so smoothly, however I don't think guilt is a word my WAW is capable of feeling, sadly.
