Rails Console not working (searching for wrong gems) - ruby-on-rails-4

Question

My Rails Console stopped working:
$ rails c
Could not find rake-10.2.2 in any of the sources
Run `bundle install` to install missing gems.
You'd think running bundle install or bundle update would work, but nope! What baffles me is that I'm not using rake 10.2.2 and it's not in gemfile.lock. I'm using rake 10.3.2
Running via bundle exec rails console RAILS_ENV=development returns same error.
Trying gem install rake -v 10.2.2 improved the situation only mildly. Now it's looking for a different gem that I'm not using:
$ rails c
Could not find i18n-0.6.9 in any of the sources
Run `bundle install` to install missing gems.
Again...bundle install is just fine. Odder still, rails s works fine and rake tasks are fine. I just can't use the console!
$ bundle install
Using rake 10.3.2
Using i18n 0.6.11
Using json 1.8.1
Using minitest 5.4.2
Using thread_safe 0.3.4
Using tzinfo 1.2.2
Using activesupport 4.1.6
Using builder 3.2.2
Using erubis 2.7.0
Using actionview 4.1.6
Using rack 1.5.2
Using rack-test 0.6.2
Using actionpack 4.1.6
Using mime-types 2.3
Using mail 2.6.1
Using actionmailer 4.1.6
Using arbre 1.0.2
Using sass 3.2.19
Using thor 0.19.1
Using bourbon 3.2.3
Using coffee-script-source 1.8.0
Using execjs 2.2.1
Using coffee-script 2.3.0
Using railties 4.1.6
Using coffee-rails 4.0.1
Using formtastic 3.0.0
Using has_scope 0.6.0.rc
Using responders 1.0.0
Using inherited_resources 1.4.1
Using jquery-rails 3.1.2
Using jquery-ui-rails 5.0.0
Using kaminari 0.16.1
Using activemodel 4.1.6
Using arel 5.0.1.20140414130214
Using activerecord 4.1.6
Using bundler 1.7.3
Using hike 1.2.3
Using multi_json 1.10.1
Using tilt 1.4.1
Using sprockets 2.11.0
Using sprockets-rails 2.1.4
Using rails 4.1.6
Using polyamorous 1.1.0
Using ransack 1.4.1
Using sass-rails 4.0.3
Using activeadmin 1.0.0.pre from git://github.com/activeadmin/activeadmin.git (at master)
Using addressable 2.3.6
Using bcrypt 3.1.7
Using bootstrap-sass 3.2.0.2
Using mini_portile 0.6.0
Using nokogiri 1.6.3.1
Using xpath 2.0.0
Using capybara 2.4.3
Using timers 1.1.0
Using celluloid 0.15.2
Using coderay 1.1.0
Using database_cleaner 1.3.0
Using orm_adapter 0.5.0
Using warden 1.2.3
Using devise 3.3.0
Using diff-lcs 1.2.5
Using launchy 2.4.2
Using email_spec 1.6.0
Using excon 0.39.6
Using factory_girl 4.4.0
Using factory_girl_rails 4.4.1
Using ffi 1.9.5
Using figaro 1.0.0
Using formatador 0.2.5
Using friendly_id 5.0.4
Using multi_xml 0.5.5
Using httparty 0.13.1
Using gibbon 1.0.4
Using rb-fsevent 0.9.4
Using rb-inotify 0.9.5
Using listen 2.7.11
Using lumberjack 1.0.9
Using method_source 0.8.2
Using slop 3.6.0
Using pry 0.10.1
Using guard 2.6.1
Using rspec-support 3.1.1
Using rspec-core 3.1.4
Using rspec-expectations 3.1.2
Using rspec-mocks 3.1.2
Using rspec 3.1.0
Using guard-rspec 4.3.1
Using haml 4.0.5
Using haml-rails 0.5.3
Using heroku-api 0.3.19
Using heroku_san 4.3.2
Using jbuilder 1.5.3
Using turbolinks 2.3.0
Using jquery-turbolinks 2.1.0
Using netrc 0.7.7
Using newrelic_rpm 3.9.4.245
Using pg 0.17.0
Using rails_serve_static_assets 0.0.2
Using rails_stdout_logging 0.0.3
Using rails_12factor 0.0.2
Using recaptcha 0.3.6
Using rest-client 1.7.2
Using rspec-rails 3.1.0
Using shoulda-matchers 2.7.0 from git://github.com/thoughtbot/shoulda-matchers.git (at master)
Using spring 1.1.3
Using spring-commands-rspec 1.0.2
Using sqlite3 1.3.8
Using streak_client 0.0.0 from git://github.com/yetanothernguyen/streak_client.git (at master)
Using sucker_punch 1.2.1
Using uglifier 2.5.3
Your bundle is complete!
Use `bundle show [gemname]` to see where a bundled gem is installed.

Answer 1

Answer suggested to me via Twitter worked:
Step 1) Delete gemset and reinstall
This didn't get me running, but it at least got the console talking to the right gemset. But the console was still hanging.
Interrupting the console showed an error with spring.
This question suggested I stop spring: ruby on rails console hanging when loading
bin/spring stop
Everything is working!

Answer 2

Run this
bundle exec rails console RAILS_ENV=development