  We show that our previously proposed anti-hierarchical baryon collapse
scenario for the joint evolution of black holes and host galaxies predicts
quasar luminosity functions at redshifts 1.5<z<6 and local properties in nice
agreement with observations. In our model the quasar activity marks and
originates the transition between an earlier phase of violent and heavily
dust-enshrouded starburst activity promoting rapid black hole growth, and a
later phase of almost passive evolution; the former is traced by the
submillimeter-selected sources, while the latter accounts for the high number
density of massive galaxies at substantial redshifts z>1.5, the population of
Extremely Red Objects, and the properties of local ellipticals.
