pip install fails with /usr/bin/clang: No such file or directory

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I am migrating my dev environment to 10.8, however I am having issues with pip.

Specifically, I'm using a virtualenvs/virtualwrapper but cannot pip install psycopg2, and during the building of the psycopg2._psycopg extension, I get:

unable to execute /usr/bin/clang: No such file or directory
error: command '/usr/bin/clang' failed with exit status 1

Can anyone offer a solution to this?

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