I'm not real sure on this. I'm a believer in loc-tite when needed, but not if it isn't needed. I'll assume the bushing in question is a bronze one.
The Green is the "Wicking" type to be used on something that is already assembled. I don't think it would hurt to use it for this, but if the bushing is loose in the hole, I would take it out and I would spike it with a punch in a number of places in order to create some raised bumps on it. That would give you some "teeth" on that part by increasing the over all diameter of it. At that point, if I felt it was still loose, I would determine my fix based on just how loose it is. If it was close, I'd probably use the Blue loc-tite and re-install the bushing. If it felt like it was still questionable, I'd get/make another bushing more suitable for the job at hand.