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Insane can't find executable Rails for Rails error

February 17, 2012
ruby

After running any rails command I was getting this error:

/home/hrvoje/.rvm/rubies/ruby-1.9.2-p290/lib/ruby/1.9.1/rubygems.rb:340:in
`bin_path': can't find executable rails for rails-3.2.1 (Gem::Exception)
  from /home/hrvoje/.rvm/gems/ruby-1.9.2-p290/bin/rails:19:in `<main>'

Installing latest railties fixes it:

$ gem install railties --pre

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