Schrader said it's not a dream sequence, but it ends where it began, with Travis driving around the city and fueling his hate, waiting to let it build up and explode again.
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Those with schizotypal personality disorder tend to feel uncomfortable and have a difficult time in social circumstances, although they may still be friendly towards others. In the film Taxi Driver, Robert De Niro's character Travis Bickle seems to be suffering from this disorder.