On CNBC: Bankruptcy may be only option for US automakers

On CNBC's "Street Signs," guests discussed the options for the "Big Three." But it turns out Detroit may not have too many options. Guests Frank Lorenzo, former CEO of Continental Airlines, and Paul Ingrassia, a former Dow Jones executive, agreed that bankruptcy may be the best solution for American automakers and the U.S. government. 

Both guests believe the automakers should seek protection from creditors through Chapter 11 bankruptcy or a similar program. Lorenzo believes the public will be understanding and, with proper safeguards and guarantees in place, will continue to purchase cars from a company that is in bankruptcy protection. 

As a former airline CEO whose company successfully emerged from bankruptcy, Lorenzo has "little doubt" that GM and other automakers will be able to make it through this difficult period.