That seems counterintuitive to me. If you created $new with init instead
of clone, entirely different things would happen. And any other git
commands outside the subshell would behave oddly. (Actually, the first of
these reminds me why I thought git-clone used the caller's $GIT_DIR:
git-init does.)
It makes sense that it would work that way, but the documentation should
probably reflect that in config.txt.
-Daniel
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