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I can't tell if Bannon is stupid, or bitter.

Trump firing Mueller would be the final nail in his coffin.

So Bannon is either stupid in not knowing this, or he is bitter from being kicked out - so he is trying to get Trump impeached.

So yes he does strike me as the type who would try to sink Trump purposefully.   

There is an even more sinister plan.  It suggests that Bannon might become a target and that he wants Trump to defund the investigation because he might be next.  If Bannon is connected Trump must use Bannon as his fall guy.  If Bannon can get Trump to kill the investigation, Trump goes down and the investigation can't touch Bannon. 

So either Bannon wants to kill Trumps presidency or he wants to protect himself. Either way, you have to hand it to Trump for keeping the worst company anyone can think of.