Bundler w/ Rails 2.3 - uninitialized constant Rails

bundler_w_rails-2.3

jdms-mm:tbundler3 User$ bundle install
Using rake (0.9.2.2) 
Using activesupport (2.3.14) 
Using rack (1.1.3) 
Using actionpack (2.3.14) 
Using actionmailer (2.3.14) 
Using activerecord (2.3.14) 
Using activeresource (2.3.14) 
Using mysql (2.8.1) 
Using rails (2.3.14) 
Using bundler (1.2.0) 
Your bundle is complete! Use `bundle show [gemname]` to see where a bundled gem is installed.
jdms-mm:tbundler3 User$ rake db:create
rake aborted!
uninitialized constant Rails

(See full trace by running task with --trace)
jdms-mm:tbundler3 User$ bundle exec rake db:create
rake aborted!
uninitialized constant Rails

(See full trace by running task with --trace)
jdms-mm:tbundler3 User$ bundle exec rake db:create --trace
rake aborted!
uninitialized constant Rails
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/ext/module.rb:36:in `const_missing'
/Users/jdm/Documents/rails/tbundler3/config/boot.rb:1
/Users/jdm/Documents/rails/tbundler3/Rakefile:4:in `require'
/Users/jdm/Documents/rails/tbundler3/Rakefile:4
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/rake_module.rb:25:in `load'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/rake_module.rb:25:in `load_rakefile'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/application.rb:501:in `raw_load_rakefile'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/application.rb:82:in `load_rakefile'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/application.rb:133:in `standard_exception_handling'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/application.rb:81:in `load_rakefile'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/application.rb:65:in `run'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/application.rb:133:in `standard_exception_handling'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/lib/rake/application.rb:63:in `run'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@global/gems/rake-0.9.2.2/bin/rake:33
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@r238/bin/rake:23:in `load'
/Users/jdm/.rvm/gems/ruby-1.8.7-p370@r238/bin/rake:23
jdms-mm:tbundler3 User$ bundle config
Settings are listed in order of priority. The top value will be used.

jdms-mm:tbundler3 User$ bundle -v
Bundler version 1.2.0
jdms-mm:tbundler3 User$ ruby -v
ruby 1.8.7 (2012-06-29 patchlevel 370) [i686-darwin11.4.0]
jdms-mm:tbundler3 User$ rails -v
Rails 2.3.14
jdms-mm:tbundler3 User$ rvm -v

rvm 1.15.7 (stable) by Wayne E. Seguin <[email protected]>, Michal Papis <[email protected]> [https://rvm.io/]