"Database does not exist"... but it does exist

I'm running into a bizarre issue with "database XYZ does not exist."
I've done a lot of searching, but can't find the cause. For the sake
of reference, this is PG 8.4.6 running on RHEL 5.4.

Here's what I've done so far with md5 authentication enabled:

psql -U postgres -c "create user miket with password 'miket'"
createdb testingdb -U postgres
psql -U postgres -d testingdb -c "create schema testingdb authorization miket"
psql -U postgres -d testingdb -c "grant all privileges on database
testingdb to miket"

The last statement returns the following:

ERROR:    database "testindb" does not exist

When I run:

psql -l -U postgres

testindb most certainly does exist.

Any help on resolving this would be greatly appreciated.

Thanks,

Mike