title: bundle install returns "Could not locate Gemfile"
body: <p>I'm new to Rails and am currently working through a guide. 
  The guide states:</p>
  
  <blockquote>
    <p>Use a text editor to update the Gemfile needed by Bundler with the
    contents of Listing 2.1.</p>
  
  <pre><code>source 'https://rubygems.org'
  
  gem 'rails', '3.2.3'
  
  group :development do
    gem 'sqlite3', '1.3.5'
  end
  
  
  # Gems used only for assets and not required
  # in production environments by default.
  
  group :assets do
    gem 'sass-rails',   '3.2.4'
    gem 'coffee-rails', '3.2.2'
    gem 'uglifier', '1.2.3'
  end
  
  gem 'jquery-rails', '2.0.0'
  
  group :production do
    gem 'pg', '0.12.2'
  end
  </code></pre>
    
    <p>We then install and include the gems using the <code>bundle install</code>
      command:</p>
  
  <pre><code>    $ bundle install --without production 
  </code></pre>
    
    <p>If Bundler complains about <code>no such file to load -- readline
    (LoadError)</code> try adding <code>gem ’rb-readline’</code> to your Gemfile.)</p>
  </blockquote>
  
  <p>I followed the steps even adding on <code>gem 'rb-readline'</code> to the <code>Gemfile</code>, but apparently the file can't be found and when I go to my text editor I do see the <code>Gemfile</code> itself. I noticed that they made me put <code>gem 'rails', 3.2.3</code> and my version of Rails is 3.2.1 so I tried changing it to 3.2.1 but that didn't work either.</p>
  
  <p>Any thoughts or advice would be much appreciated.</p>