RubyOnRails rake db:create - error rake aborted

When I run run rake db:create, I get this error statement:

[root@mite-wendy: /Users/wendy/blog2] rake db:create
(in /Users/wendy/blog2)
rake aborted!
no such file to load -- bundler/setup
/Users/wendy/blog2/Rakefile:5:in `require'
(See full trace by running task with --trace)

[root@mite-wendy: /Users/wendy/blog2] rake db:create --trace (in /Users/wendy/blog2) rake aborted! no such file to load -- bundler/setup /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/custom_require.rb:31:in gem_original_require' /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rubygems/custom_require.rb:31:inrequire' /Users/wendy/blog2/config/boot.rb:6 /Users/wendy/blog2/config/application.rb:1:in require' /Users/wendy/blog2/config/application.rb:1 /Users/wendy/blog2/Rakefile:5:inrequire' /Users/wendy/blog2/Rakefile:5 /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rake.rb:2383:in load' /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rake.rb:2383:inraw_load_rakefile' /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rake.rb:2017:in load_rakefile' /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rake.rb:2068:instandard_exception_handling' /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rake.rb:2016:in load_rakefile' /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rake.rb:2000:inrun' /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rake.rb:2068:in standard_exception_handling' /System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/lib/ruby/1.8/rake.rb:1998:inrun' /usr/bin/rake:31

[root@mite-wendy: /Users/wendy/blog2] gem list

** LOCAL GEMS **

actionmailer (3.2.9)
actionpack (3.2.9)
activemodel (3.2.12, 3.2.9)
activerecord (3.2.9)
activerecord-mysql-adapter (0.0.1)
activeresource (3.2.9)
activesupport (3.2.12, 3.2.9)
akami (1.2.0)
archive-tar-minitar (0.5.2)
arel (3.0.2)
builder (3.0.4)
bundler (1.3.4)
coffee-rails (3.2.2)
coffee-script (2.2.0)
coffee-script-source (1.6.1)
columnize (0.3.6)
erubis (2.7.0)
execjs (1.4.0)
gyoku (1.0.0)
hike (1.2.1)
httpi (2.0.2)
i18n (0.6.4)
journey (1.0.4)
jquery-rails (2.2.1)
json (1.7.7)
linecache19 (0.5.13)
mail (2.4.4)
mime-types (1.21)
multi_json (1.7.0)
mysql (2.9.0)
mysql2 (0.3.11)
nokogiri (1.5.6)
nori (2.0.3)
polyglot (0.3.3)
rack (1.4.5)
rack-cache (1.2)
rack-ssl (1.3.3)
rack-test (0.6.2)
rails (3.2.9)
railties (3.2.9)
rake (10.0.3)
rbx-require-relative (0.0.9)
rdoc (3.12.2)
ruby-debug-base19x (0.11.30.pre10)
ruby-debug-ide (0.4.17.beta14)
ruby_core_source (0.1.5)
rubygems-update (2.0.3)
sass (3.2.7)
sass-rails (3.2.6)
savon (2.1.0)
sprockets (2.2.2)
sqlite3 (1.3.7)
sqlite3-ruby (1.3.3)
thor (0.17.0)
tilt (1.3.6)
treetop (1.4.12)
tzinfo (0.3.37)
uglifier (1.3.0)
wasabi (3.0.0)