Pulling without any local commits deletes stages files without warning.

Hi

Pulling without any local commits deletes staged files without
warning. Is this intended behaviour? Log:

jem@jem-usb:~/projects$ git --version
git version 1.7.9.5
jem@jem-usb:~/projects$ uname -a
Linux jem-usb 3.2.0-23-generic-pae #36-Ubuntu SMP Tue Apr 10 22:19:09
UTC 2012 i686 i686 i386 GNU/Linux
jem@jem-usb:~/projects$ mkdir x
jem@jem-usb:~/projects$ cd x
jem@jem-usb:~/projects/x$ git init
Initialized empty Git repository in /home/jem/projects/x/.git/
jem@jem-usb:~/projects/x$ echo "hi" > hello.world
jem@jem-usb:~/projects/x$ git add hello.world
jem@jem-usb:~/projects/x$ git status
# On branch master
#
# Initial commit
#
# Changes to be committed:
#   (use "git rm --cached <file>..." to unstage)
#
#       new file:   hello.world
#
jem@jem-usb:~/projects/x$ ls -asl
total 24
4 drwxrwxr-x 3 jem jem 4096 Apr 28 20:56 .
4 drwxr-xr-x 8 jem jem 4096 Apr 28 20:56 ..
4 drwxrwxr-x 7 jem jem 4096 Apr 28 20:56 .git
12 -rw-rw-r-- 1 jem jem    3 Apr 28 20:56 hello.world
jem@jem-usb:~/projects/x$ git remote add origin git@github.com:Synesso/memx.git
jem@jem-usb:~/projects/x$ git reflog
fatal: bad default revision 'HEAD'
jem@jem-usb:~/projects/x$ git pull origin master
remote: Counting objects: 7, done.
remote: Compressing objects: 100% (5/5), done.
remote: Total 7 (delta 0), reused 3 (delta 0)
Unpacking objects: 100% (7/7), done.
From github.com:Synesso/memx
* branch            master     -> FETCH_HEAD
jem@jem-usb:~/projects/x$ ls -asl
total 36
4 drwxrwxr-x 3 jem jem 4096 Apr 28 20:53 .
4 drwxr-xr-x 8 jem jem 4096 Apr 28 20:52 ..
4 drwxrwxr-x 8 jem jem 4096 Apr 28 20:53 .git
12 -rw-rw-r-- 1 jem jem   59 Apr 28 20:53 .gitignore
12 -rw-rw-r-- 1 jem jem    9 Apr 28 20:53 README.md
jem@jem-usb:~/projects/x$ git reflog
c80135d HEAD@{0}: initial pull