I have postgres installed .I verified using "which psql" -> "/usr/bin/psql"

/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/postgresql_adapter.rb:1208:in
 
`initialize': could not connect to server: No such file or directory 
(PG::Error)
Is the server running locally and accepting
connections on Unix domain socket "/var/run/postgresql/.s.PGSQL.5432"?
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/postgresql_adapter.rb:1208:in
 
`new'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/postgresql_adapter.rb:1208:in
 
`connect'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/postgresql_adapter.rb:326:in
 
`initialize'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/postgresql_adapter.rb:28:in
 
`new'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/postgresql_adapter.rb:28:in
 
`postgresql_connection'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:315:in
 
`new_connection'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:325:in
 
`checkout_new_connection'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:247:in
 
`block (2 levels) in checkout'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:242:in
 
`loop'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:242:in
 
`block in checkout'
from /home/ubuntu/.rvm/rubies/ruby-2.1.2/lib/ruby/2.1.0/monitor.rb:211:in 
`mon_synchronize'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:239:in
 
`checkout'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:102:in
 
`block in connection'
from /home/ubuntu/.rvm/rubies/ruby-2.1.2/lib/ruby/2.1.0/monitor.rb:211:in 
`mon_synchronize'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:101:in
 
`connection'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_pool.rb:410:in
 
`retrieve_connection'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_specification.rb:171:in
 
`retrieve_connection'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/connection_adapters/abstract/connection_specification.rb:145:in
 
`connection'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/model_schema.rb:308:in
 
`clear_cache!'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activerecord-3.2.11/lib/active_record/railtie.rb:97:in
 
`block (2 levels) in <class:Railtie>'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activesupport-3.2.11/lib/active_support/callbacks.rb:418:in
 
`_run__3173475577973407112__prepare__3045031719680251897__callbacks'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activesupport-3.2.11/lib/active_support/callbacks.rb:405:in
 
`__run_callback'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activesupport-3.2.11/lib/active_support/callbacks.rb:385:in
 
`_run_prepare_callbacks'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activesupport-3.2.11/lib/active_support/callbacks.rb:81:in
 
`run_callbacks'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/actionpack-3.2.11/lib/action_dispatch/middleware/reloader.rb:74:in
 
`prepare!'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/actionpack-3.2.11/lib/action_dispatch/middleware/reloader.rb:48:in
 
`prepare!'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/application/finisher.rb:47:in
 
`block in <module:Finisher>'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/initializable.rb:30:in
 
`instance_exec'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/initializable.rb:30:in
 
`run'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/initializable.rb:55:in
 
`block in run_initializers'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/initializable.rb:54:in
 
`each'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/initializable.rb:54:in
 
`run_initializers'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/application.rb:136:in
 
`initialize!'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/railtie/configurable.rb:30:in
 
`method_missing'
from /home/ubuntu/apps/releases/20140711202030/config/environment.rb:5:in 
`<top (required)>'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activesupport-3.2.11/lib/active_support/dependencies.rb:251:in
 
`require'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activesupport-3.2.11/lib/active_support/dependencies.rb:251:in
 
`block in require'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activesupport-3.2.11/lib/active_support/dependencies.rb:236:in
 
`load_dependency'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/activesupport-3.2.11/lib/active_support/dependencies.rb:251:in
 
`require'
from /home/ubuntu/apps/releases/20140711202030/config.ru:3:in `block in 
<main>'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/rack-1.4.5/lib/rack/builder.rb:51:in
 
`instance_eval'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/rack-1.4.5/lib/rack/builder.rb:51:in
 
`initialize'
from /home/ubuntu/apps/releases/20140711202030/config.ru:in `new'
from /home/ubuntu/apps/releases/20140711202030/config.ru:in `<main>'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/rack-1.4.5/lib/rack/builder.rb:40:in
 
`eval'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/rack-1.4.5/lib/rack/builder.rb:40:in
 
`parse_file'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/rack-1.4.5/lib/rack/server.rb:200:in
 
`app'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/commands/server.rb:46:in
 
`app'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/rack-1.4.5/lib/rack/server.rb:304:in
 
`wrapped_app'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/rack-1.4.5/lib/rack/server.rb:254:in
 
`start'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/commands/server.rb:70:in
 
`start'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/commands.rb:55:in
 
`block in <top (required)>'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/commands.rb:50:in
 
`tap'
from 
/home/ubuntu/apps/shared/bundle/ruby/2.1.0/gems/railties-3.2.11/lib/rails/commands.rb:50:in
 
`<top (required)>'
from script/rails:6:in `require'
from script/rails:6:in `<main>'

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