Latest 'pip' fails with “requires setuptools >= 0.8 for <package>”

setuptools fix

# I got the above error on Mavericks after upgrading Python.
# This is what I did to fix it.

# I was using virtualenv, so I first deactivated the current virtual environment
# and removed it completely
deactivate
rm -rf venv

# Then I upgraded pip to 1.5.1
brew upgrade pip

# Check with
pip --version 

# I also upgraded setuptools
sudo pip install setuptools --no-use-wheel --upgrade

# If all is good, reinstall virtualenv
sudo pip uninstall virtualenv
pip install virtualenv

# Now I created a new virtualenv and derped on
virtualenv venv
activate