Bring a large pot of lightly salted water to a boil, cook spaghetti until al dente, and drain.
In a large bowl, mix ground beef, Italian bread crumbs, dried parsley, parmesan, 1/4 teaspoon black pepper, garlic powder and egg. Then form into approximately 24 balls. Refrigerate until needed.
In a large saucepan, sauté onion and garlic in olive oil over medium heat until onion is translucent. Stir in tomato sauce, bay leaf, dried basil, 1/4 - 1/2 teaspoon black pepper. Proceed to add the meatballs in the sauce. Also, add salt, if needed. Cover, reduce heat to low, and simmer for 30 minutes. Mix with the cooked spaghetti to serve.