DEPRECATION WARNING while using bundle install - ruby-on-rails

Question

So I am trying to do bundle install . But it is throwing the below errors. What is the problem here?
bundle exec rake db:create:all
DEPRECATION WARNING: String based terminators are deprecated, please use a lambda. (called from included at /home/.gem/ruby/2.1.3/bundler/gems/authlogic-09163c7d2a9b/lib/authlogic/session/callbacks.rb:66)
DEPRECATION WARNING: String based terminators are deprecated, please use a lambda. (called from included at /home/.gem/ruby/2.1.3/bundler/gems/authlogic-09163c7d2a9b/lib/authlogic/session/callbacks.rb:67)
rake aborted!
Cannot load `Rails.application.database_configuration`:
Could not load database configuration. No such file -
/home/.gem/ruby/2.1.3/gems/railties-4.1.5/lib/rails/application/configuration.rb:105:in `database_configuration'
/home/.gem/ruby/2.1.3/gems/activerecord-4.1.5/lib/active_record/railtie.rb:43:in `block (3 levels) in <class:Railtie>'
Could not load database configuration. No such file -
/home/.gem/ruby/2.1.3/gems/railties-4.1.5/lib/rails/application/configuration.rb:105:in `database_configuration'
/home/.gem/ruby/2.1.3/gems/activerecord-4.1.5/lib/active_record/railtie.rb:43:in `block (3 levels) in <class:Railtie>'
Tasks: TOP => db:create:all => db:load_config
(See full trace by running task with --trace)
Earlier I had tried the below:
rake db:create:all
rake aborted!
Gem::LoadError: You have already activated rake 10.4.2, but your Gemfile requires rake 10.3.2. Prepending `bundle exec` to your command may solve this.
/home/.gem/ruby/2.1.3/gems/bundler-1.7.12/lib/bundler/runtime.rb:34:in `block in setup'
/home/.gem/ruby/2.1.3/gems/bundler-1.7.12/lib/bundler/runtime.rb:19:in `setup'
/home/.gem/ruby/2.1.3/gems/bundler-1.7.12/lib/bundler.rb:122:in `setup'
/home/.gem/ruby/2.1.3/gems/bundler-1.7.12/lib/bundler/setup.rb:7:in `<top (required)>'
/home/project/config/boot.rb:4:in `<top (required)>'
/home/project/config/application.rb:1:in `<top (required)>'
/home/project/Rakefile:4:in `<top (required)>'
LoadError: cannot load such file -- bundler/setup
/home/project/config/boot.rb:4:in `<top (required)>'
/home/project/config/application.rb:1:in `<top (required)>'
/home/project/Rakefile:4:in `<top (required)>'
(See full trace by running task with --trace)
$ bundle exec rake db:create:all
DEPRECATION WARNING: String based terminators are deprecated, please use a lambda. (called from included at /home/.gem/ruby/2.1.3/bundler/gems/authlogic-09163c7d2a9b/lib/authlogic/session/callbacks.rb:66)
DEPRECATION WARNING: String based terminators are deprecated, please use a lambda. (called from included at /home/.gem/ruby/2.1.3/bundler/gems/authlogic-09163c7d2a9b/lib/authlogic/session/callbacks.rb:67)
rake aborted!
Cannot load `Rails.application.database_configuration`:
Could not load database configuration. No such file -
/home/.gem/ruby/2.1.3/gems/railties-4.1.5/lib/rails/application/configuration.rb:105:in `database_configuration'
/home/.gem/ruby/2.1.3/gems/activerecord-4.1.5/lib/active_record/railtie.rb:43:in `block (3 levels) in <class:Railtie>'
Could not load database configuration. No such file -
/home/.gem/ruby/2.1.3/gems/railties-4.1.5/lib/rails/application/configuration.rb:105:in `database_configuration'
/home/.gem/ruby/2.1.3/gems/activerecord-4.1.5/lib/active_record/railtie.rb:43:in `block (3 levels) in <class:Railtie>'
Tasks: TOP => db:create:all => db:load_config
(See full trace by running task with --trace)

Answer 1

You are trying to run "rake db:create:all" which would create your database but as error states - it seems you don't have your config/database.yml file. It's a configuration file that tells rails how to connect to your database. You can read more about it here.
If you really want to run bundle install, just use "bundle install" command instead. This will install all gems listed in your Gemfile.
If you will get problems with rake version conflicts, check out this stack overflow question.

Answer 2

It seems you have no config/database.yml file in your project's directory.
Why I think so? Follow me ...
Could not load database configuration. No such file -
/home/.gem/ruby/2.1.3/gems/railties-4.1.5/lib/rails/application/configuration.rb:105:in `database_configuration'
Ok, let's take a look at this code where we have error:
yaml = Pathname.new(paths["config/database"].existent.first || "")
config = if yaml.exist?
require "yaml"
require "erb"
YAML.load(ERB.new(yaml.read).result) || {}
elsif ENV['DATABASE_URL']
# Value from ENV['DATABASE_URL'] is set to default database connection
# by Active Record.
{}
else
raise "Could not load database configuration. No such file - #{yaml}"
end
As you can see - if no such file or ENV variable then rails throws error.