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