Tom Flores' Beef Stewed with Olives

Ingredients

• 1 4-lb. piece boneless beef
• 1/8 lb. butter
• 1 teaspoon salt
• 1/2 teaspoon freshly ground black pepper
• 1/3 cup water
• 1 bay leaf
• 1 tablespoon grated onion
• 1 small red pepper
• 1/2 lb. pitted black olives
• 2 tablespoons flour