"Imminent GM bankruptcy was always fiction, created by Wall Street and the media"

This quote by Robert Lutz is describing the speculation that General Motors (GM) was going to declare insolvency. This speculation was produced by Wall Street and the media, and was not based on any factual evidence. Lutz is suggesting that the idea of GM bankruptcy was an incorrect story, which the business was never in any genuine threat of declaring bankruptcy. He is indicating that Wall Street and the media were exaggerating the circumstance in order to produce a sense of urgency and panic. This quote is a tip that it is important to be familiar with the capacity for sensationalism in the media, and to be mindful of the sources of info that we rely on.