This is Iggy Fortuna, the God of Belief--basically his powers mean that anything he believes in becomes true. Except he's completely batshit insane and believes in all sorts of bizarre conspiracy theories, delusions of grandeur, and ancient aliens.
And yes he's got sock puppets on his hands and appears to be...wearing a bra. Oh, and he has rainbows for wings.
The little bunny creature is his (very real) imaginary friend, which shall henceforth be known as Psychobunny. Also note that Psychobunny turns into a hulking bunny monster at night.