The title pretty much covers the question. I actually had to generate an ssh key in order to get the local-checkout going. Something like this: git clone ec2-user@localhost:/home/ec2-user/local_bare_repo.git local_normal_repo
According to git doc,
<repository> The "remote" repository that is the source of a fetch or pull operation. This parameter can be either a URL (see the section GIT URLS below) or the name of a remote (see the section REMOTES below).