I am nervous as this feels like early 2008 all over again.
Don't be. In 2008 there was a real risk that banks would fall like dominoes. When talk started about a possible Greek default in the first round, the same concern was there: That a lot of European banks had so deep loans to Greece that a Greek default would cause the banks to start toppling and cause a widespread crisis in Europe.
This time, the other European states (notably Germany), ECB and IMF have largely taken over the "bad debt" from the banks. Which means that Central banks, ECB and IMF will have to write off some loans if Greece defaults, but banks and the financial system is largely insulated.
Last time, Greece used the threat of throwing Europe into a deep financial crisis as negotiation leverage. This time, that threat has been neutralized and that is why you see other European leaders standing more firm on Greece owning up to their situation.
Talk about WWII reparations is NOT owning up to the problems that created this crisis in the first place. Greece were about to be exposed as insolvent before entering the Euro. But getting into the Euro meant cheaper loans and could postpone the point where they ran out of money. So Greece at the time lied and cheated their way into the Euro: They "mistakenly" left out the state obligations for pensions as obligations (should have counted as long-term debt). They got in and got access to cheaper loans. But they did not mend the broken system, and here we are.
Greece must own up.