I have 3 bulging disks, degenerative arthritis, what exercise should do?

Core muscles +. Core muscle strengthening, stretching your back with a gravity inversion device, and losing weight!
Low Back Exercises. I suggest you go to the website of american academy of orthopaedic surgery and print yourself a lumbar spine exercise guide. Here's the link that you need: http://orthoinfo.Aaos.Org/topic.Cfm?Topic=a00302.