red33410 - I could be wrong but I think Wally's comment is directed at the PHB in regard to his idiotic statement in the first panel. He's quick to pick up on Alice's remark and in his sarcastic way turn it into the PHB's most recent failure.
Sounds like a valid suggestion. Fawning Fredo would make a good recurring character, at least on the same level as the Creepy and Loud characters. He'd be no match for Wally or Alice, but with the right single-mindedness could challenge Topper. Intriguing.