Your rake watch
command is doing exactly what you asked it to: watching your source files for changes and regenerating them as necessary. And even though it looks like Compass is doing something you should wait for, it's really waiting for you to do something! Try editing a blog post or the layout and saving your changes and you should see something like:
[2013-12-18 00:20:18] regeneration: 1 files changed
Keep in mind too that the rake preview
command will also have the last line of Compass is polling for changes. Press Ctrl-C to Stop.
but your preview server will be running and your site viewable at http://localhost:4000
or http://localhost:4000/ProjectName
if you're using a Github Project Page