Schwab blames the crisis on two things: the April 2004 SEC decision to permit investment-banking firms with over $5 billion in capital to borrow as much as they wanted -- an opportunity they grabbed to borrow $30 for each $1 of capital. And he believes Greenspan fueled the disaster by ignoring all the "mortgages at a teaser rate, 2%, no tax returns required, no down payment required."

Why the happy face? He believes that market will derive comfort from Obama's plan to help the economy -- believing it will include a $1 trillion to $2 trillion stimulus plan. He thinks that the Dow or the S&P 500 could bounce back 40% or 50% within three or four months -- particularly if Obama takes Schwab's advice to cut taxes to 95% of the people and not raise them on the other 5%.

His career advice for his grandchildren is priceless: "have passion about whatever it is, go for it, and make contributions."

If Schwab is right about his prediction for a market pop, it sounds like it would be good to be invested in stocks before Obama takes office. And I have no doubt that his company would benefit greatly from that.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book, You Can't Order Change: Lessons From Jim McNerney's Turnaround at Boeing, will be published by Portfolio on December 26, 2008. He has no financial interest in the securities mentioned.