On the Common Errors in English Usage Web site, the "bologna/baloney" entry sets us straight on the usage:
“Bologna” is the name of a city in
Italy, pronounced “boh-LOAN-ya.” But although in English the sausage
named after the city is spelled the same, it is pronounced “buh-LOAN-ee”
and is often spelled “baloney.” Either spelling is acceptable for the
sliced meat product.
Then there is the expression “a bunch of
baloney.” “Baloney” in this case probably originated as a euphemism for
“BS.” When it means “nonsense,” the standard spelling is “baloney.”
People who write “bunch of bologna” are making a pun or are just being
. . . and in today's Word Routes column, Ben Zimmer serves up more on the history of "baloney."