  Electro-optical feedback can produce an in-loop photocurrent with arbitrarily
low noise. This is not regarded as evidence of `real' squeezing because
squeezed light cannot be extracted from the loop using a linear beam splitter.
Here I show that illuminating an atom (which is a nonlinear optical element)
with `in-loop' squeezed light causes line-narrowing of one quadrature of the
atom's fluorescence. This has long been regarded as an effect which can only be
produced by squeezing. Experiments on atoms using in-loop squeezing should be
much easier than those with conventional sources of squeezed light.
