I am running Mac OSX 10.9.1 and I am using RVM to manage Ruby v2.0.0-p353.
When I try to install Rails I get this error:
Ryans-MacBook-Air-2:~ ryan$
The latest version no longer has the class2path method so the problem can be avoided by downgrading the Psych gem to version 2.0.0:
gem list psych # note down latest version
gem uninstall psych -v 2.0.5 # or whatever version you have installed
After the gems are installed you can upgrade the Psych gem again should you need it.