Sweat (do not brown) the onions and green pepper in olive oil. Add the garlic when the mixture starts to soften and continue until the onions are transparent. Remove from the pan.
Add the ground beef to the pan and brown to medium-rare. Drain the excess fat.
Return the onions and peppers. Add the diced tomatoes, tomato sauce, wine, olives, raisins, vinegar, bay leaves and the rest of the seasonings and simmer over low heat about 1 hour, adding water if necessary. Season with salt and pepper to taste.