don't reinvent wheels :)

vagrant@localhost ~/foo $ mkdir bar
vagrant@localhost ~/foo $ mkdir baz
vagrant@localhost ~/foo $ echo test > bar/test
vagrant@localhost ~/foo $ echo test2 > baz/test
vagrant@localhost ~/foo $ echo foo > bar/foo
vagrant@localhost ~/foo $ cd bar/
vagrant@localhost ~/foo/bar $ git init
Initialized empty Git repository in /home/vagrant/foo/bar/.git/
vagrant@localhost ~/foo/bar $ git add .
vagrant@localhost ~/foo/bar $ git commit -m'init'
[master (root-commit) e360fb9] init
 2 files changed, 2 insertions(+)
 create mode 100644 foo
 create mode 100644 test
vagrant@localhost ~/foo/bar $ mv .git/ ../baz/
vagrant@localhost ~/foo/bar $ cd ../baz/
vagrant@localhost ~/foo/baz $ git diff
diff --git a/foo b/foo
deleted file mode 100644
index 257cc56..0000000
--- a/foo
+++ /dev/null
@@ -1 +0,0 @@
-foo
diff --git a/test b/test
index 9daeafb..180cf83 100644
--- a/test
+++ b/test
@@ -1 +1 @@
-test
+test2