Hard to design effective homeowner aid: White House

WASHINGTON (Reuters) - A senior White House adviser said on Tuesday it was difficult to formulate a plan to aid distressed homeowners that did not end up throwing taxpayer funds at people who don't need it.

National Economic Council Director Keith Hennessey told CNBC television that the Bush administration had examined numerous proposals for homeowner aid but found many of them were not effective in targeting relief.

"You end up doing what economists call 'buying the base.' You end up spending a lot of taxpayer money on people who were already planning on buying a home next year," he said. "It's hard to get a lot of bang for the buck."

(Reporting by Tim Ahmann, Editing by Chizu Nomiyama)